As the Carolina Journal continues to examine the impact of federal tariff policy on North Carolina’s major industries, the spotlight turns to steel. Following President Donald Trump’s example, the European Union has proposed a 50% tariff on steel.
“Earlier this year, the Trump administration imposed a 50% tariff on all steel products not melted and poured in the United States,” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “Now the European Union is proposing to reduce the amount of steel it will accept tariff-free nearly in half and apply its own 50% tariff on volumes above that cap. With United States tariffs now at 50%, steel exporters, particularly in China, have redirected shipments toward Europe, putting new pressure on the European Union’s domestic producers. In short, as the cost of doing business in the United States rose, exporters of cheap steel began looking for other markets to absorb their output.”
The European Commission has introduced a proposal which would protect the EU steel industry from the adverse effects of global overcapacity, ensuring the long-term sustainability of this strategically vital sector. The proposal safeguards the steel measure, which is set to expire in June 2026. The proposal responds to a call from EU workers, member states, members of the European Parliament, and stakeholders to provide permanent and robust protection for the EU steel industry, safeguard EU jobs, and bolster the industry’s decarbonization efforts.
Delivering on the commitments outlined in the EU Steel and Metal Action Plan, the proposal upholds the principle of open trade while fostering collaboration with global partners to address overcapacity. It does so by limiting tariff-free import volumes to 18.3 million tons per year — a 47% reduction compared to 2024 steel quotas — doubling the out-of-quota duty to 50% from the previous 25% under the safeguard, and strengthening the traceability of steel markets through the introduction of a a “Melt and Pour” requirement designed to prevent circumvention, according to the proposal.
According to data from the Economic Development Partnership of North Carolina (EDPNC), year-to-date through July, iron and steel exports have declined from $201.3 million to $185.9 million, representing a decrease of about 8%. During the same period, exports of articles made of iron or steel have increased slightly, rising from $158.6 million to $161.9 million, or about 2%. Taken together, total exports in these categories have remained relatively flat year-to-date, slipping from $359.9 million to $347.7 million.
Year-to-date through July, iron and steel imports have increased from $147 million to $185.4 million, a rise of approximately 26%, according to EDPNC data. In contrast, imports of articles made of iron or steel have declined from $542 million to $480.3 million, representing a decrease of about 11%. Overall, when combined, total imports during this period have remained relatively stable, slipping slightly from $689 million to $665.8 million.
“Year-to-date through July, imports of steel, iron, and articles thereof have remained relatively flat; however, notable declines in May and July compared to last year suggest early signs of the impact from the steel tariffs that took effect in mid-March,” concluded Harris.
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