Following his announcements aboard Air Force One, President Donald Trump signed a document on February 10, reinstating tariffs on steel and aluminum imports. These measures mirror those enacted during his first term.
Effective March 12, steel will face a 25% tariff upon entry into the U.S., consistent with the post-2018 policy. Aluminum tariffs, previously at 10%, will also increase to 25%. A White House statement on February 11 indicated no exceptions and emphasized support for domestically "melted and poured" metals, citing low utilization rates of U.S. steel mills and aluminum foundries (75% and 55%, respectively).
The European Commission President Ursula von der Leyen responded on February 11, stating, "Unjustified tariffs against the European Union will not go unanswered. They will lead to firm and proportionate countermeasures."
In 2024, the U.S. imported nearly 15% of its steel, approximately 29 million tons, and three-quarters of its aluminum, totaling 4.8 million tons. According to the American Iron and Steel Institute (AISI), Canada, Brazil, and Mexico were the top exporters of steel to the U.S. in 2024. The EU-27 collectively exported 4.2 million tons of steel to the U.S., slightly less than Brazil, making the U.S. the second-largest customer of the European steel industry, accounting for 16% of its exports, according to Eurofer.
The tariffs primarily target Canada for aluminum, where companies like Alcoa and Rio Tinto have significant operations. Canada accounts for nearly two-thirds of the primary aluminum needs of the U.S. industry, according to the Aluminum Association. The EU is a smaller supplier, with 230,000 tons of aluminum sent to the U.S. in 2023, per the U.S. International Trade Agency (ITA).
These tariffs could lead to increased metal imports into Europe, potentially impacting European steel producers already facing overproduction from China. Eurofer is advocating for the European Commission to revise safeguard measures, set to expire in June 2026.
European Aluminium echoed these concerns, highlighting the risk to manufacturers of high-value-added products and the potential for a surge of aluminum imports into the EU. Guillaume de Goÿs, president of Aluminium Dunkerque, noted that while Canadian aluminum will likely continue to flow to the U.S., it will be more expensive for customers.
Similar tariffs implemented in 2018 led to decreased imports and increased domestic steel prices, benefiting U.S. steel producers like US Steel. However, industries consuming steel, such as automotive and equipment manufacturing, suffered. The long-term impact will depend on the reality of these measures. In 2018, targeted countries retaliated, and the EU targeted bourbon. The Biden administration later introduced a quota system in 2021, allowing European countries to export certain quantities of metals without tariffs, although not fully restoring pre-2018 activity levels.