EU warns US against expanding steel and aluminum tariff scope amid trade tensions

Tuesday 18 November 2025 - 07:50

By: Dakir Madiha

EU warns US against expanding steel and aluminum tariff scope amid trade tensions

European Union officials are preparing to confront U.S. Commerce Secretary Howard Lutnick over Washington's efforts to expand the list of EU products subject to elevated steel and aluminum tariffs. This expansion threatens to undermine a trade agreement reached just months ago designed to cap tariffs at 15% for most goods. Despite the deal, the EU still faces a 50% duty on steel and aluminum exports, alongside numerous derivative products containing these metals.

The U.S. Department of Commerce recently added 407 new product categories to the Section 232 tariffs, including wind turbines, mobile cranes, bulldozers, railcars, furniture, and compressors, raising concerns within the EU about tariff circumvention and increased trade barriers. EU trade chief Maros Sefcovic, alongside trade ministers from all 27 member states, plans to discuss these issues with Lutnick at a meeting in Brussels on November 24.

The ongoing tariff expansion risks destabilizing global supply chains and escalating tensions in steel-related industries. European steelmakers, particularly giants like ArcelorMittal, face significant financial impacts, with the company estimating losses of $150 million due to U.S. tariffs. The dispute also pressures the EU’s legislative bodies, which have yet to adopt measures introduced to lower certain tariffs on U.S. goods, creating uncertainty about the future of the trade deal.

The EU fears that U.S. tariff actions deviate from the spirit of the July agreement and may invite retaliatory measures. European industry sectors dependent on steel-intensive goods, such as automotive and machinery, warn of growing costs and administrative burdens, challenging the competitiveness of EU exports to the United States.

This intensifying dispute highlights the fragile state of transatlantic trade relations, with both sides seeking to protect their domestic steel and aluminum industries while balancing broader economic interests.