Pittsburgh, 24 July (Argus) — A list of countermeasures the EU has approved against the US in the event a trade agreement is not reached with Washington includes higher steel and aluminum tariffs and a ban on ferrous scrap exports.
The proposed measures would first place a 25pc import tariff on US steel and aluminum shipments starting 7 August then ban ferrous scrap and aluminum scrap exports to the US beginning 7 September.
A broad range of other commodity trade restrictions would also be enacted starting 7 August should the EU and US fail to reach an agreement.
“Right now our focus is on finding a negotiated outcome with the US,” said EU trade spokesperson Olof Gill, adding the list was adopted by an “overwhelming” majority of EU states.
Additional EU countermeasures would enter into force on 7 September, 1 December and 7 February 2026 if agreements are not reached by those dates.
An outright ban on ferrous scrap exports to the US would eliminate a reliable source of high-quality prime scrap grades to electric arc furnace (EAF) steelmakers. It would also further squeeze their raw material supply chains as mills also brace for a 50pc tariff on Brazilian pig iron, an integral feedstock for EAF flat-rolled mills.
US steelmakers typically rely on imports of prime scrap to help relieve supply and pricing pressure in the domestic market.
The Netherlands, Poland and Sweden are significant suppliers of prime scrap to the US. Shipments from these countries accounted for 27pc of all US prime scrap imports through May this year, according to US customs data. Canada is the largest shipper of prime scrap into the US and ferrous scrap shipments from that country so far maintain an exemption to tariffs under the US-Mexico-Canada trade agreement (USMCA).
The US is not a large importer of aluminum scrap from the EU. Germany accounted for about 1pc of total imports in 2024, US customs data show. Similarly, US shipment of steel and aluminum products to the EU were minimal in 2024.
The bloc proposed a 25pc retaliatory tariff on imported steel and aluminum in March but postponed the implementation until early August. The US tariff on those metals since March has risen to 50pc.
On 10 April, the EU first suspended a set of countermeasures against the US to allow for negotiations.
On 23 July, the commission provided EU states with an update on trade discussions, noting a US baseline tariff of 15pc on a range of goods, with exceptions such as steel, which remains at 50pc. EU states were warned by the commission against bilateral negotiation with the US that could weaken the bloc’s collective position.
By Dafydd ab Iago and Brad MacAulay
