US duties on European steel: Luxembourg under attack
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On 13 March, the US imposed additional 25% duties on steel and aluminium from EU countries, which was the implementation of a long-standing threat. Washington's decision, dictated by its "America First" policy, is causing alarm in Luxembourg, where the steel sector has long been teetering on the brink.
According to 2024 data, Luxembourg exported more than €587 million worth of metals and metal products outside the EU, of which €148 million went to the US - almost a quarter of the sector's total exports. Although this represents only 0.75% of total European exports, the impact on the country is tangible, given the specialised structure of the local metals industry.
ArcelorMittal Luxembourg has expressed concern and echoed the alarming statement of Eurofer, the European steel association, which warns: "If European steel disappears, so will the European automotive industry and the security of the entire continent". Eurofer also calls on the EU to reconsider measures to protect its own market in order to at least partially mitigate the effects of US actions.
The situation is now assessed as more serious than in 2018, when similar measures were already introduced by the Trump administration. At that time, Luxembourg steelmakers were able to survive on niche products such as heavy beams and sheet piles. But even now, local plant utilisation remains below optimal levels, especially in the face of competition from Asia, where production costs are much lower.
Thus, the new duties are not just a foreign trade move, but a geo-economic blow to a key sector of European industry, especially in small but export-oriented countries like Luxembourg.
