25 November 2025 – The European Union is desperately seeking an exemption to the U.S. Section 232 steel tariffs. Now the U.S. government has made a demand that Brussels has already rejected. Instead, EU Trade Commissioner Šefčovič would prefer to go explain the law in Washington once more. CBAM: Double taxation on steel is becoming increasingly obvious.
EU: U.S. Government with Clear Demand on Steel Tariffs
The European Union views the U.S. Section 232 tariffs on steel, their increase to 50%, the loss of several million tons of quotas, and the extension to products containing steel as a thorn in its side. No wonder, as the United States is the most important export market for European companies.
Commission unsuccessful so far in obtaining Section 232 exemptions
Several times this year, the Commission attempted to obtain an exemption to the Section 232 tariffs and was rejected in Washington every time. Hardly surprising, as U.S. President Donald Trump had named EU steel exports as one of the main reasons for expanding Section 232. Among other things, allegations were raised that EU producers were circumventing Section 232 and other trade defence measures through imported input materials (such as steel slabs).
EU still importing large volumes of slabs
According to the latest EUROSTAT data, imports of steel slabs in 2025 from Russia are likely to amount to approx. 3.5 million tonnes, from China approx. 1.1 million tonnes, and from Ukraine just under 820,000 tonnes.
EU steel tariffs as a door-opener to the United States?
With the planned introduction of permanent European steel tariffs and quotas, the Commission recently attempted to persuade the Americans to make concessions. However, looking at the latest demands for possible concessions regarding the Section 232 tariffs, it does not seem to have moved anything at all.
U.S. government wants concessions on digital laws
Yesterday, the U.S. government signalled that it would, under certain conditions, be willing to consider easing the Section 232 tariffs. For this, however, the EU would have to make significant concessions on its digital laws and implement relaxations for U.S. companies.
A demand that EU Trade Commissioner Šefčovič immediately rejected, stating that the United States simply needed the European digital laws to be explained better in order to reach agreement. This is supposed to happen with a trade delegation departing shortly for Washington.
Trade Commissioner wants to explain better
How promising the idea of a lesson in EU laws and bureaucracy from the hapless Trade Commissioner is likely to be remains to be seen. It is well known that Washington has reacted little positively in the recent past to patronising lectures from Brussels. Furthermore, Commissioner Šefčovič has forgotten that once his steel tariffs are in force, they must also apply to the United States.
That the Commission is not particularly good at explaining its own laws has also become more than clear with the recently “leaked” CBAM draft regulations and the table of the absurd Country Specific Embedded Emissions. These again caused unnecessary confusion in the industry. Unfortunately, the Commission explains this only to its good friends among the domestic steel producers, who were courted behind closed doors in Brussels on 14 November at a CBAM industry breakfast.
CBAM: Double taxation on steel increasingly obvious
With a possible introduction of permanent steel tariffs in the EU, the trade defence measure CBAM is becoming an increasingly obvious form of double taxation especially on steel. This would not be the case for other goods affected by CBAM. Double taxation is fundamentally not permitted within the EU nor for imports into the Union. This is expected to lead to significant legal problems with both measures and a flood of lawsuits before European courts.
Furthermore, we would be quite curious to see how Mr Šefčovič would explain this to the US government if he were asked about it.
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