European Steel Crisis Threatens 13 Million Jobs: Portuguese Industry Demands Action

Portugal's steel and metals wholesale association, Açomefer, alongside the European Federation of Steel, Tube and Metals Distributors (Eurometal), has issued an urgent appeal to Brussels and EU national governments: act immediately or risk losing 13 million direct jobs across the continent's steel and metals industries. The warning comes as Europe's industrial base struggles with surging subsidized imports and persistently high energy costs.

Why This Matters

• Job security: More than 65 million indirect jobs depend on the steel and metals sector, amplifying the risk across Europe's economy.

• Export threat: Portugal's metalworking industry exports are now at risk from current EU tariff policies and global competition.

• Energy crisis: Persistently high industrial electricity prices in Europe hamper competitiveness and investments in green steel projects.

• Democratic stability: Industry leaders warn that mass job losses could trigger social unrest and undermine European political cohesion.

The Petition: Unprecedented Industry Consensus

A petition circulating through Eurometal's channels has gathered over 300 signatures from individual companies and 35 national steel associations, representing what organizers describe as an unprecedented level of sectoral unity. The signatories are demanding that the European Commission implement trade measures comparable to those already deployed by the United States and Canada, where tariffs on steel imports have reached 50% under Section 232 provisions.

The document argues that Europe needs "effective, immediately applicable commercial measures, including tariffs to stabilize the European market for steel and steel-intensive products." Without rapid intervention, the petition warns, the continent faces "accelerated deindustrialization" that could permanently erode its manufacturing capacity.

What's Driving the Crisis

Europe's steel sector has been under persistent pressure from subsidized imports—many of them from China, India, Turkey, Indonesia, and other global competitors. The industry faces severe disadvantages including high energy costs and regulatory burdens that undercut its global competitiveness.

Açomefer and allied industry representatives emphasize that while they support the EU's climate objectives, decarbonization must occur within a "fair global competitive framework" that doesn't sacrifice European jobs in the process. They argue that without affordable energy, streamlined regulations, and robust trade defense, the transition to green steel will stall—and with it, Europe's industrial capacity.

What the Industry Wants

The petition outlines key policy demands aimed at ensuring that European steelmakers can compete globally while meeting the EU's climate targets. Key demands include:

• "Made in EU" labeling requirements for strategic materials like steel in public procurement and infrastructure projects.

• Competitive industrial electricity pricing to bring energy costs in line with global benchmarks.

• Extension of CBAM (Carbon Border Adjustment Mechanism) to downstream steel products, preventing carbon leakage to fabricated goods.

• Revision of the EU Emissions Trading System (ETS) to reduce the regulatory burden on domestic producers.

• Tariffs and quotas on steel derivatives and steel-intensive products, not just primary steel.

• Reduced bureaucracy across environmental and industrial regulations.

Signatories emphasize that these measures are essential to support both European industrial competitiveness and the continent's climate commitments.

Impact on Portugal and Europe

For Portugal, the stakes are significant. The nation's metalworking and metals industries represent a substantial portion of export-driven manufacturing. Açomefer has emphasized that Portuguese industry must have targeted support from both Brussels and the national government as EU policies reshape the competitive landscape.

Beyond economics, the petition warns of social and political consequences. Losing 13 million direct jobs—and endangering 65 million indirectly dependent roles—would create new dependencies on third-country suppliers, strain Europe's social safety nets, and potentially trigger unrest that could destabilize democratic institutions across the bloc.

Global Context: US and Canada Set the Precedent

The petition's call for tariffs aligned with US and Canadian levels reflects the scale of protection these nations have implemented. Washington has maintained Section 232 tariffs on steel with significant duties on steel-intensive products, while Canada has imposed its own tariffs on American steel and aluminum in response. The EU is considering comparable levels of protection to support its domestic industry.

China remains a central concern. As the world's largest steel exporter, Beijing's subsidized production floods global markets, distorting prices and undermining higher-cost European competitors. The EU has introduced anti-subsidy measures against various importers, but industry leaders argue these measures remain insufficient to address the scale of subsidized competition.

What Comes Next

The petition remains open for signatures through Eurometal's website, and its backers are pressing for meetings with European Commission officials and national ministers. The outcome will shape not only the future of Europe's steel sector but also the viability of tens of millions of manufacturing jobs—including thousands in Portugal's export-driven metalworking industries.

For Portuguese residents, the message is clear: the industry is demanding urgent action to preserve manufacturing competitiveness, employment security, and Europe's industrial base. Whether Brussels and Lisbon respond with the targeted policies the industry is requesting will determine the future of European steel production and the jobs that depend on it.