11 February 2025 – US President Donald J. Trump announced the adjustments to the Section 232 tariffs on steel and aluminum on Monday. Overall, it can already be said that more fairness has been created for all market participants.
- 25% US tariffs on steel and aluminum: More fairness for all market participants
- No new tariffs, but an early update of the Section 232 tariffs
- The key points of the presidential decree for steel and aluminum are thus
- Section 232 tariffs will be significantly fairer than before
- EU steel producers largely to blame for Section 232 adjustment?
- Level playing field in short supply in the EU
25% US tariffs on steel and aluminum: More fairness for all market participants
US President Donald Trump followed up his announcement on Sunday to impose tariffs on steel and aluminum equally for all countries with action on Monday. Even though only the framework conditions for the 25% tariffs on steel and aluminum have been announced so far and important details are still unknown, it is already possible to speak of greater fairness in the US Section 232 tariffs.
No new tariffs, but an early update of the Section 232 tariffs
In terms of content, the new measures are an early update of the Section 232 tariffs on steel and aluminum, which was actually not on the White House’s agenda until April 2025, as can be seen from the America First Trade Policy of January 20, 2025.
The key points of the presidential decree for steel and aluminum are thus
- Introduction of 25% tariffs on all steel products and steel derivatives from all countries of origin that were not previously affected.
- Increase of the existing aluminum tariffs from 10% to 25% on all aluminum products and aluminum derivatives from all countries of origin
- Removal of all exemptions from the Section 232 tariffs
- Repeal of all existing General Approved Exclusions
- Repeal of the Section 232 Exclusion Request procedure with immediate effect
- Cancellation of all existing quota or special regulations for Argentina, Australia, Brazil, Canada, Mexico, South Korea, the member countries of the European Union, Japan, United Kingdom and Ukraine
- Introduction of a “melt and pour” standard for steel in North America, and a “smelt and cast” standard for aluminum in North America
Section 232 tariffs will be significantly fairer than before
Even if we are not generally in favor of tariffs, these adjustments and deletions are a great leveler for all economic players in the United States, in contrast to the unfair EU Safeguard measure on certain steel products. Especially because the Trump administration has explicitly included all steel derivatives in the Section 232 tariffs.
Although steel and aluminum will therefore become more expensive in the United States in principle, this will be offset by the fact that demand for steel derivatives from US production is likely to increase, meaning that the downstream processing industry will also benefit from this adjustment.
EU steel producers largely to blame for Section 232 adjustment?
The European Union is likely to bear a significant share of the blame for this serious measure, as European steel manufacturers have benefited greatly from unfair exemptions to Section 232 and have exploited this excessively. President Trump has put a stop to this unfair behavior and created equal rights and a real level playing field for small and medium-sized companies as well.
Thorsten Gerber, CEO of the Gerber Group, said today: “We strongly warn EU players and their lobbyists not to abuse the US President’s decision and demand even more unfair and morally illegal protection for their allegedly so threatened mills.” He added further: “Folks, it has now simply dismantled your unfair advantage. And quite rightly so. It’s time for more justice towards SMEs in the European Union too.”
Level playing field in short supply in the EU
Because a level playing field is something that simply does not exist with the EU Safeguard Measure on certain steel products and the many other anti-dumping and anti-subsidy measures taken by Europeans. These only benefit steel producers in Europe and create serious competitive disadvantages for SMEs.
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