The European steel market faces further setbacks as the US imposes a 50 percent tariff on steel imports, disrupting recovery efforts. According to the European Steel Association (EUROFER), growth expected in 2025 will not materialize, and steel consumption will decline for the fourth consecutive year, dropping 0.9 percent after a 1.1 percent decrease in 2024.

Despite resilience in the service sector, industrial demand remains weak, with overall steel consumption unlikely to recover significantly before 2026. EUROFER CEO Axel Eggert warned that the US duties exacerbate existing challenges, including global overcapacity, high energy costs, and geopolitical instability. As a result, steel producers have been forced to halt production, lay off workers, and delay decarbonization efforts.

While steel consumption saw a slight increase in the fourth quarter of 2024, domestic supply declined by 2 percent, and imports reached a record 27 percent market share. Steel-intensive sectors such as automotive and construction continued to struggle, with production dropping 2.6 percent. EUROFER has urged the European Commission to implement strong trade measures to counter the US tariffs, warning that without action, the EU market could be flooded with excess steel originally intended for the US.