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According to the new surveillance system, Europe is flooded with steel that has been repurposed from the US for high tariffs.
The European steel industry is calling for Brussels to take urgent action as a surge in imports is expected to curb EU prices.
“The time for action is now,” Ilse Henne, chairman of Thysenkrupp’s supervisory committee, told FT.
The warning came when the European Commission issued its first surveillance report to detect a surge in imports after Donald Trump returned to the White House, where tariffs threatened. Since January 1st, imports of a wide range of products, from guitars to industrial robots, have seen a steep decline in prices.
Stainless steel bars and rod imports rose more than 1,000% year-on-year, with prices down 88%. Other steel bars and rods rose 222%, but prices fell 55%.
Ilse Henne, Thyssenkrupp: “Time for Action is Now” © DDP/Sven Simon Reuters Connect
“This new import surveillance tool is enhancing our ability to protect our interests and stop the surge in imports that have been diverted to the market.”
Electric guitar imports increased almost 500%, with prices falling by five-quarters, while industrial robots increased by 315%, with prices down by a third.
Significant increases were also reported in plywood, aluminum foil and spirit.
The heat map in the report showed that China is the source of a major surge in machinery, textiles, chemicals, wood and paper.
Imports of food, drinks and chemicals from the US also caused a major jump as businesses stocked up before the EU retaliatory tariffs hit.
Analysts warned that consumers could also trade because automated customs data is inaccurate as products with very different prices are included in the same category.
However, Henne said the threat to the steel industry is real. The EU has taken safeguards since 2016 to impose a 25% tariff on imports above the quota, but has been eased before the 2026 expiration date.
Sifchovich promised on Thursday that he would propose a replacement system by this summer.
Henne said plans to support the industry should move forward quickly by lowering energy prices and prioritizing domestic production in public contracts.
“Other companies outside the EU must meet the same climate, market openness, competitive standards, or risk eroding our own resilience,” she said.
Rebar at Massachusetts Steel Supply Company: The US applied 50% tariff on steel and aluminum imports this week © Joseph Prezioso/AFP
She also sought tariffs on Russian steel imports. After being exempt from the invasion of Ukrainian steel slabs in 2022, completed semi-finished products were banned.
Henne said that due to weak demand, Thyssenkrupp is reducing its production capacity from 11 million tonnes to 9mntons a year, resulting in thousands of unemployment.
The US this week placed 50% tariffs on steel and aluminum, doubling the 25% tax on sectors introduced by the US president in March.
Eurofer, a trade group, said on Thursday that EU steel consumption would fall 0.9% in 2025, the fourth year of economic recession. However, he said imports continue to increase.
“In light of the continued deterioration in the EU steel market outlook, we call on the European Commission to consider emergency trade measures to ensure stability in the EU steel market.”
