GOVERNMENTS/ASSOCIATIONS/FASTENER GROUPS
Interview with EIFI President PAOLO POZZI
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2025-11-21
1. Since early this year, President Trump's tariff measures have dealt a heavy blow to the global economy, throwing global industrial supply chains including the fastener industry into disarray. The repercussions brought by the tariffs continue to reverberate among the industry. How do you assess the actual impact of the U.S. uncertain tariff policies on EU fastener manufacturers selling products to the U.S.?
The recent U.S. tariff measures (25% and now 50%) have certainly introduced a high level of uncertainty into the global trade environment, affecting industrial supply chains across many sectors, including fasteners. For European manufacturers exporting to the United States, these measures have created some challenges, particularly in terms of cost competitiveness and long-term business planning. Nevertheless, European manufacturers are renowned worldwide for their commitment to innovation, and reliability — values that continue to be appreciated by customers in the United States and across the globe. That said, the U.S. is not among the main export markets for EU fastener manufacturers. In the first eight months of 2025 (Source Eurostat), we observed a 2% decrease of EU27 exports of Fasteners (CN 7318) to USA vs the same period in 2024 (49.4 KTons to 48.3 KTons) showing the first signs of the impact of the U.S. tariffs in force. EU27 imports of fasteners from the United States also declined by 9% (from 8.2 K tons in January–August 2024 to 7.4 K tons in the same period of 2025).
We believe that open and fair trade remains the best foundation for sustainable industrial growth, and we hope that dialogue and mutual understanding will guide future policy decisions on both sides of the Atlantic.
2. Amid the disruption caused by steel and aluminum tariffs, many manufacturers who previously focused their exports on the U.S. have shifted their business to other countries (particularly the EU) to avoid tariff impacts. Has this trend had any impact on the domestic sales market for EU manufacturers?
The redirection of exports toward the European market has created some additional competitive pressure for EU fastener manufacturers. As products originally intended for the U.S. market entered Europe, certain segments experienced higher supply levels and tighter margins.
However, the overall impact for the first eight months in 2025 on domestic sales has remained limited even if the first three import countries, China, Taiwan and Vietnam, increased relatively of 25,5%, 18,5%, 49% vs 2024. The European fastener market is serving industries such as automotive, construction, and machinery that rely on certified, high-performance products. This strong focus on compliance continues to protect European manufacturers from purely price-based competition. Moreover, many companies have successfully adapted by diversifying their export destinations and reinforcing their presence in the European market through innovation and service excellence. In this context, EIFI continues to work closely with European institutions to ensure fair competition and maintain a balanced market environment for all EU producers.
3. (Following Q2) Are local EU manufacturers taking any countermeasures or implementing strategies in response to increased market expansion efforts by overseas competitors in Europe?
European fastener manufacturers have reacted to the growing presence of overseas competitors by strengthening their strategic focus and enhancing their distinctive advantages. Rather than competing on price, many companies are investing in innovation, automation, and digitalization to improve efficiency and flexibility across their operations. At the same time, there is a clear shift toward specialization — developing advanced, high-performance, and customized fasteners that meet the strict technical and regulatory requirements of European industries. Sustainability has also become a defining priority, with manufacturers increasingly adopting low-carbon materials and circular production models to align with the EU’s Green Deal objectives.
4. Which industrial sectors currently represent the largest fastener demand market share and are of the greatest concern to EU manufacturers?
Within the European market, the largest share of fastener demand continues to come from the automotive, construction, and industrial machinery sectors, which together represent a substantial portion of total consumption. These industries are currently undergoing major transformations — from the electrification of vehicles and new mobility concepts to the push for energy-efficient buildings and advanced manufacturing technologies — all of which have a direct impact on fastener requirements. The energy transition is also creating new opportunities and challenges, particularly in renewable energy projects such as wind, solar, and hydrogen infrastructure, where fasteners must meet extremely demanding technical and safety standards. Additionally, aerospace and rail remain strategically important markets, requiring high-precision and certified components.
5. Earlier reports indicated that the EU may consider adjusting the scope of entities required to report carbon emissions under the CBAM to target “only upstream major emitters (e.g., raw material suppliers)”, exempting downstream fastener processing plants with negligible carbon emissions from reporting obligations. Such an adjustment (if proved to be true) is expected to significantly reduce the burden of collecting carbon emission data for downstream processing facilities. Regarding this matter, do you have any recent official updates from the EU? What is EIFI's perspective and stance on this matter?
The latest revision of the Carbon Border Adjustment Mechanism (CBAM), aimed primarily at simplifying reporting and compliance obligations - particularly for small and medium-sized enterprises - is generally a positive step. However, it also risks creating a double standard within the European Union. While the European fastener industry continues to invest heavily in meeting the sustainability objectives set by legislators, the revised framework may allow the importation of products that do not adhere to equivalent environmental standards. Although the new regulation classifies the carbon footprint of fastener manufacturing as “negligible,” CO2 emissions from fasteners produced using electric arc furnace steel can account for 30-40% of total emissions when considering the full production process - from annealing and cold forging to quenching, tempering, and coating. As one of the first downstream products integrated into CBAM, fasteners - comprising up to 99% steel - were rightly included in the mechanism given their essential role across numerous strategic sectors, including construction, automotive, mechanical engineering, energy, and defense. Maintaining CBAM coverage for downstream products in general, and for CN code 7318 (fasteners) in particular, would incentivize European manufacturers to further enhance the sustainability of their production processes and reduce emissions throughout the value chain. The European Industrial Fasteners Institute (EIFI) maintains that retaining the original inclusion of downstream products, as initially decided by the European Commission, is crucial to achieving EU climate objectives. Only through comprehensive and consistent regulation can the Commission ensure fair competition, strengthen European industrial production, and effectively advance the Union’s climate goals.
6. Beyond tariffs and CBAM, what other market factors do you believe are challenging the supply and demand of fasteners in the EU?
Beyond tariffs and the CBAM mechanism, several structural factors are currently influencing the balance of supply and demand in the European fastener market.
First, volatility in raw material and energy costs continues to affect production planning and pricing stability. Although conditions have improved compared to the peak of the energy crisis, uncertainty remains a concern for many manufacturers. Second, logistics and supply chain disruptions, partly linked to geopolitical tensions and transportation bottlenecks, have highlighted the importance of local sourcing, inventory flexibility, and stronger supplier networks within Europe. Third, the shortage of skilled labor and the need for continuous investment in digitalization and automation are shaping the competitiveness of the sector. Companies must balance efficiency gains with the ongoing need to train and retain qualified personnel.
Finally, sustainability and regulatory compliance are becoming central to every aspect of industrial operations. Meeting environmental targets while maintaining cost efficiency and global competitiveness is one of the defining challenges for the years ahead.
7. The “Fastener Poland” this year has just concluded, with many international exhibitors expressing optimism about the outlook for the European fastener demand market (particularly in Central and Eastern Europe). Do EU manufacturers or EIFI share the same view? Why?
Optimism surrounding the European fastener demand market in Central and Eastern Europe is driven by several key factors. These include significant government and EU investments in infrastructure projects (such as express roads, motorways, and strategic air bases), as well as a construction sector rebound supported by both national and EU-level programs like the NRRP and REPowerEU grants. Additionally, the expansion of major industries such as automotive and renewable energy continues to stimulate demand.
The region also benefits from its strategic geopolitical position and the EU’s focus on “strategic autonomy” and supply chain resilience, which have led to increased investments in domestic production capacity, local sourcing, and processing. These developments strengthen regional supply chains and bolster local manufacturing. Moreover, the ongoing adoption of advanced technologies - including IOT solutions and artificial intelligence - further enhances industrial efficiency and underpins the sustained growth in fastener demand across the region. At the most recent EIFI meeting in September, member confidence rose from 4.84 in September 2024 to 5.52 in the same month of 2025.
8. In what areas do you anticipate EIFI will engage in closer exchanges and cooperation with Taiwanese fastener industry in the future?
Both Europe and Taiwan are recognized for their innovation-driven fastener industries and their commitment to maintaining a reliable and transparent supply chain. The two regions have long fostered a fair and balanced partnership within the fastener sector and remain dedicated to upholding these principles in the future. In addition to its strong relations with Taiwanese fastener associations, the European Industrial Fasteners Institute (EIFI) has actively collaborated with the Taiwan Institute of Economic Research (TIER) to enhance mutual understanding of the EU’s Carbon Border Adjustment Mechanism (CBAM). This cooperation aims to support companies in both regions in effectively addressing the regulatory and operational implications of the CBAM framework.
9. EIFI just held its membership conference in Spain this past May. What other significant membership or international exchange events are scheduled next?
EIFI is preparing for its 2026 General Assembly, to be held in London, UK, from 21 to 23 May. This flagship in-person event represents the most significant gathering of the year. As in all previous editions, invitations will be extended to Fastener Associations worldwide. Over the past two years, the format of the open session of the Assembly has been structured to include a brief insight or update from each participating Organization, followed by a keynote focusing on a current and highly relevant topic for the fastener industry. Distinguished experts in fields such as geopolitics, automotive, construction, and economics will be invited to share their perspectives, providing valuable guidance to industry leaders and entrepreneurs in shaping their future strategic business decisions.
During 2026, EIFI will be hosting exclusive Members-only meetings for the Automotive and General Industry & Distribution Market Groups, along with dedicated events addressing key topics such as US tariffs, TDI, CBAM, and PFAS.
10. What is your outlook for the EU fastener market in 2026?
Looking ahead to 2026, we expect the European fastener market to demonstrate moderate but steady growth, driven by ongoing industrial modernization and the transition toward sustainable technologies. Sectors such as construction, renewable energy, and aerospace are likely to continue generating strong demand for fasteners that meet evolving technical and environmental standards. We anticipate that innovation, digitalization, and sustainability will remain key drivers of competitiveness. Companies that can combine efficiency with advanced engineering, environmental responsibility, and supply chain resilience are best positioned to succeed. While challenges such as material price volatility, regulatory pressures, and global competition will persist, the European fastener industry has repeatedly proven its adaptability and long-term resilience. Through collaborative initiatives, investment in new technologies, and a continued focus on quality and service, we are confident that the EU fastener sector will maintain its global leadership.
歐洲工業扣件協會
理事長Paolo Pozzi
美國鋼鋁稅
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President Paolo Pozzi
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