Steel groups voice different takes on US-EU trade deal

Recall that the deal, announced on Sunday, includes a 15% tariff on European goods imported to the US. However, the 50% Section 232 tariffs on steel and aluminum remain separate and unaffected by the pact so far.

A tariff rate of 30% on EU products sent to the US had been threatened ahead of the Aug. 1 deadline.

Other stipulations include that the EU has agreed to buy $750 billion worth of US energy, along with investing an additional $600 billion in the US above current levels, according to a CNBC report.

Eurofer

Europe’s steel association Eurofer called the deal a “balancing act.”

“The deal on tariffs struck by the EU with the US limits the damage in the current circumstances, but the impact on European steel remains dramatic as long as 50% tariffs are still applied,” Eurofer said in a statement on Monday.

Joint US-EU action on global overcapacity and a possible return to a tariff-rate quota (TRQ) system were hinted at by European Commission President Ursula von der Leyen, Eurofer said. However, the details were “vague and lack the necessary details to the bring the economic certainty needed by EU steel producers.”

The steel trade group pointed to a statement Von Der Leyen put out following the meeting with Trump:

“On steel and aluminum, the EU and the US face the common external challenge of global overcapacity. We will work together to ensure fair global competition. And to reduce barriers between us, tariffs will be cut. And a quota system will be put in place.”

Still, Eurofer said that “uncertainty remains regarding all the details concerning the European steel industry, which for the time being is still subject to a 50% tariff.”

Even with the deal, the group noted that a 15% tariff on all EU products exported to the US means an additional “huge burden on steel, as many EU exports are steel intensive, such as machinery and vehicles.”

SMA

Meanwhile, SMA President Philp K. Bell had a much more favorable view.

“The Steel Manufacturers Association applauds President Trump’s announcement of a historic framework for a trade deal with the European Union, keeping his vow to put America first,” Bell said in a statement on Monday.

He said the EU deal “opens market access, ensures American-made energy will power Europe, drives substantial investments in the US, and boldly maintains the national security tariffs on steel.”

Bell added: “President Trump has made America stronger.”

AISI

Likewise, AISI President and CEO Kevin Dempsey was broadly supportive of the deal.

“AISI welcomes the trade agreement announced today between the US and the EU, which is one of our country’s most important trading partners,” he said in a statement on Monday.

Dempsey also lauded “President Trump’s continued commitment to a strong and competitive American steel industry.”