What is happening with tariffs on ferrous and non-ferrous metals in Europe and what it means for business

In recent months, rules for importing metals – steel, aluminum, and other non-ferrous metals – in Europe have significantly tightened.

What exactly are the changes?

  • The European Commission has strengthened protective measures for steel imports: tariff quotas have been reduced, rules for quota transfers have been tightened, and tariffs are imposed on volumes exceeding the quotas (last season – 25%, in the latest proposal – up to 50% for out-of-quota shipments). This decision is taken in response to the surplus of cheap imports and pressure on European producers.

  • For batches exceeding the limit, high tariffs of up to 50% will be applied to out-of-limit steel quantities. These measures are introduced to protect European metal producers from cheap imports and to preserve jobs.

  • At the same time, a review of the policy regarding aluminum is underway, and protection mechanisms for non-ferrous metals are being discussed; the EU is considering export measures (for example, scrap taxes) and coordination with partners.

  • The USA has introduced or increased metal tariffs, while the EU has announced countermeasures and negotiations for mutual concessions. In short: the USA raised tariffs on steel and aluminum imports – from June 4, 2025, the import tariff on steel and aluminum was increased from 25% to 50% for most countries.

    • An exception is made for the United Kingdom – for it, the tariff remains 25% under the agreement.

    • The USA also expanded the list of “derivative products.”

    • In August 2025, the Department of Commerce added 407 categories of goods containing steel or aluminum under this tariff – these include machinery, equipment, turbine parts, pumps, and more.

    • This means that raw materials, as well as many metal products, are now subject to tariffs, even if the metal does not appear as a separate “metal product.”

    • Additionally, the USA canceled a number of exceptions and “loopholes.” Previously, there were countries or goods exempt from these tariffs or with reduced rates; now these exceptions have been removed.

    • Rules under which metal could be “added” to a product to avoid tariffs have also been reformed.

  • CBAM policy adds another layer – from January 1, 2026, importers will have to account for the price of “embedded” carbon.

Why this matters

  • If your company purchases metal from abroad, the risk of having to pay higher tariffs has increased.

  • This can increase the cost of materials, which directly affects product cost.

  • It becomes necessary to plan in advance where and how much metal will be purchased to stay within limits and avoid extra expenses.

What can be done immediately

  • Check your contracts and ensure that the supplier and you understand who will pay any possible tariff if the batch exceeds the limit.

  • Diversify supplies – find suppliers within Europe or those whose products already comply with the new rules. This reduces the risk of unexpected tariffs.

  • Increase stock – if you usually purchase “just in time,” consider buying slightly earlier while conditions are still stable.

  • Monitor the origin of the metal – where the metal came from and how it was produced. The more transparent the supply chain, the lower the risk.

  • Communicate with suppliers and customers – inform them that conditions are changing, and discuss how you will act if metal prices rise.

What it means

For small and medium-sized businesses, this may mean higher costs or the need to adapt more quickly. For companies purchasing large volumes of metal, this is a signal: time to plan ahead, work with reliable suppliers, and review strategies.

Conclusion: practical checklist

  • Review contracts and add tariff clauses.

  • Increase the share of local/certified suppliers.

  • Ensure stock buffers and consider hedging (protection against unexpected price changes).

  • Invest in carbon footprint accounting and “green” certification.

  • Actively participate in industry associations and monitor changes in EU policy.

The market becomes more predictable only for those who act proactively.

Winning are those working with added value: alloyed/special alloys, complex products.

Sources

  • European Commission – announcements on strengthening steel protection (March 25, 2025). Trade and Economic Security+1

  • Reuters – EU proposal to reduce tariff quotas and increase out-of-quota tariffs to 50% (Oct 2025)

  • Official CBAM reference – EU Taxation and Customs Union

  • Guardian – media coverage of EU retaliations against the USA (Mar 2025)

  • Industry reactions and analysis (Eurofer, SP Global) on the impact of tariffs and trade agreements