Issue 10, 2025 - This week's editorial: Global trade war fuels price increases, ignoring weaker fundamentals 

The European flat market displays a state of inertia as it anticipates upcoming price increases due to the European Commission's impending safeguard review announcement. However, the steel industry in Europe continues to grapple with fundamental challenges, including low consumption, diminished volumes, and constrained profit margins. 

The prices of European hot rolled coils are experiencing a gradual increase. However, given the strong downturn in the automotive and construction sectors, it is doubtful whether this is sustainable. 
 
The increase in US coil prices, driven by stringent protectionist measures, has led to significant discontent among local automotive manufacturers. They express concerns over the tariff approach and warn of enormous costs and business-plan disruptions caused by targeting the United States-Mexico-Canada Agreement (USMCA) signatories. Regional tariff targeting trade partners in USMCA rankled US steel consumers, whose supply chains are often intertwined across one or both of the national borders.  

The White House is now offering a one-month tariff reprieve for US automakers who rely on cross-border supply chains. Companies include Stellantis, Ford and General Motors. Donald Trump has also reversed course on Mexico and Canada tariffs shifting his 48-hour-old policy and shelving the new tariffs on most goods.

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