12 February 2025 – The EU has threatened the United States with retaliatory measures if the adjustments to the Section 232 tariffs announced on Monday come into force against European steel exports to the United States. However, there is still no sign of any solutions or real negotiations on the European side.
Tariff dispute: EU threatens United States with retaliation
The announcement by the European Union and Commission President Ursula von der Leyen once again points to a trade war with the United States. Once again, the EU’s own warnings about tariffs are being thrown to the wind and counter-tariffs are being threatened instead of finally negotiating solutions with the US government.
‘New US tariffs’ are an update of the existing Section 232 tariffs
The proclamation of alleged new tariffs on steel and aluminium is effectively ONLY an update of the Section 232 tariffs on steel and aluminium introduced by Donald Trump in 2018. Which was probably even triggered in large part by the export behaviour of the EU steel oligopoly to the United States. This can be seen in the proclamation ‘Adjusting Imports of Steel into The United States’ of 10 February 2025 and is also likely to have cost Ukraine its special status.
Steel derivatives new in Section 232
Even though steel derivatives have been newly included in the Section 232 measures, the protective tariffs – which we oppose in principle – have become fairer for the US economy as, in contrast to European market protection measures, they not only protect one industry unilaterally, but should also strengthen demand in the steel processing industry in the United States.
EU steel manufacturers are becoming increasingly excessive in their demands
At the same time, EU steel manufacturers and their lobby organisations have been calling for months for the EU Safeguard Measure to be tightened on certain steel products – regardless of whether this would violate existing WTO agreements or breach EU law. This recently became clear with the dramatic EUROFER demands for significantly higher safeguard tariffs and a halving of import quotas. If the EU were to comply with these EUROFER demands, it would be a breach of law with an announcement. The Commission must finally put an end to this behaviour, which it has tacitly tolerated for far too long.
The insanity of European negotiating tactics is all too clear in the Commission’s statements, in which it is claimed that:
Tariffs are essentially taxes. By imposing tariffs, the US would be taxing its own citizens, raising costs for business, and fuelling inflation. Moreover, tariffs heighten economic uncertainty and disrupt the efficiency and integration of global markets.’
Source: Statement by the European Commission on potential imposition of US tariffs on EU steel and aluminium, 10 February 2025
That’s exactly how it is, but also for Europe. Or do you think it will only be more expensive for the Americans, no, also for the Europeans with your uncontrolled growth in import tariffs.
In return, dozens of market protection measures have been introduced for years for a single industrial sector, the EU steel manufacturers, thus contributing significantly to inflation and competitive disadvantages for the processing industry – although you never tire of saying how bad tariffs are.
Thorsten Gerber, CEO of the Gerber Group, said today: ‘There is no greedier people than the EU steel manufacturers, who have been telling the fairy tale of the demise of European steel production for decades and have thus become the biggest social and subsidy parasites in Europe.’ He continued: ‘In recent years, nobody has heard a single constructive proposal from domestic steel manufacturers to boost demand from metal processing companies in the EU. Do you notice anything different?’
Latest news
- 25% US tariffs on steel and aluminum: More fairness for all market participants
- US: New 25% tariffs on steel and aluminum coming
- Nickel export ban: Philippines plans export restrictions
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
