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February 4, 2025

Commerce invokes Section 232 for EU steel despite WTO violations

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Trump slaps EU with steel and aluminum tariffs citing security

President Trump signed proclamations on Feb. 10, 2025, imposing 25% tariffs on steel and 25% tariffs on aluminum from the EU and other trading partners, ending all exemptions. The tariffs took effect Mar. 12, 2025.

The proclamations eliminated exemptions previously granted to the EU, Canada, Mexico, Japan, UK, Australia, South Korea, Argentina, Brazil, and Ukraine under Section 232 of the Trade Expansion Act.

Trump applied strict 'melted and poured' standards to prevent tariff evasion through third countries and expanded tariffs to include derivative products containing steel or aluminum content.

The EU announced €26 billion in countermeasures: €8 billion from reinstating suspended 2018/2020 measures plus €18 billion in new tariffs on US products including bourbon, motorcycles, agricultural goods, textiles, and household products.

EU countermeasures ranged from 10-25% on various US exports and took effect in phases starting Apr. 1, 2025, after a two-week stakeholder consultation period.

On Jun. 4, 2025, Trump doubled the steel and aluminum tariffs to 50% for all countries except the UK, which remained at 25% pending trade deal negotiations.

The tariffs affected approximately €26 billion worth of EU exports to the US, representing about 5% of total EU goods exports to America.

📈Trade🏛️Government

People, bills, and sources

What you can do

1

Importers of EU steel should apply a 20% ad-valorem surcharge to incoming shipments, following the tariff schedule published by the European Commission (https://trade.ec.europa.eu/doclib/press/index.cfm?id=2695).

2

U.S. exporters preparing a WTO complaint can consult the SCM Agreement’s local-content rules at https://www.wto.org/english/tratop_e/scm_e/subsidy_e.htm to structure a case against the EU green-steel subsidy.

3

Dealers reshipping U.S.-made BMW X5 models to Europe should factor in an additional €420 per vehicle, based on BMW Group’s cost estimate (https://press.bmwgroup.com/global/article/detail/T0402025EN).