Germany under pressure Steel industry reacts with concern to new Trump announcement
His favorite word is "tariffs," says U.S. President Trump.
Image: dpa
Donald Trump speaks at the U.S. Steel Mon Valley Works-Irvin plant in West Mifflin, Pennsylvania.
Image: dpa
The price of steel in the USA is likely to rise if Trump gets serious.
Image: dpa
Is Trump using the constant new announcements primarily to generate pressure?
Image: dpa
His favorite word is "tariffs," says U.S. President Trump.
Image: dpa
Donald Trump speaks at the U.S. Steel Mon Valley Works-Irvin plant in West Mifflin, Pennsylvania.
Image: dpa
The price of steel in the USA is likely to rise if Trump gets serious.
Image: dpa
Is Trump using the constant new announcements primarily to generate pressure?
Image: dpa
US President Donald Trump seems to be going for maximum pressure. He has now announced higher tariffs on steel and aluminum. What does he want to achieve?
31.05.2025, 16:58
dpa
No time? blue News summarizes for you
- From June 4, steel and aluminum imports into the USA are to be subject to a 50% tariff - an escalation in the transatlantic trade conflict.
- The German Steel Federation warns of massive burdens from the tariffs and the threat of import pressure on the EU market due to diverted deliveries.
- Trump is apparently also using tariff threats strategically to force better trade deals - for example with the EU, which is currently hoping for time to negotiate.
With his new tariff announcements, US President Donald Trump is causing concern in the German steel industry. "The doubling of US tariffs on steel imports announced by President Trump marks a new level of escalation in the transatlantic trade conflict," said Kerstin Maria Rippel, Managing Director of the German Steel Federation.
Ministry of Economic Affairs and EU Commission remain silent
Trump wants to double tariffs on imports of steel into the United States from the current 25 percent to 50 percent of the value of the goods. The additional charges on imports would strengthen the US steel industry, he said in a speech to employees at a steel plant in the state of Pennsylvania. The Republican emphasized that "tariffs" were his absolute favorite word.
On his Truth Social platform, Trump declared shortly afterwards that the tariffs on aluminum should also be doubled to 50 percent. The new rates are to apply from next Wednesday (June 4). Neither the EU Commission, which is responsible for the tariff negotiations, nor the German Federal Ministry of Economics initially responded.
Rippel emphasized: "A 50 percent levy on steel exports is a massive burden for our industry, as it will further increase the pressure on the already crisis-ridden economy and affect our steel industry in many ways." The measures would place a greater burden on direct exports to the USA.
However, the indirect effect is even more problematic: traditional supplier countries risk losing access to the US market due to the "exorbitant tariffs" and would consequently redirect their steel to the EU market. This would further exacerbate the already considerable import pressure on Europe.
Justification is the protection of national security
The US government formally justifies the current levies on steel imports - just like those on aluminum and cars - with the protection of national security.
Importing steel products into the USA is likely to become more difficult with the doubling of tariffs - and the price of steel in the USA is likely to rise in the medium term. Steel is used by industry, for example in the production of cars and in construction.
Germany also exports steel to the USA
As of 2024, the USA was the world's largest steel importer after the EU. According to the US government, the most important countries of origin for imported steel products are Canada, Brazil and Mexico. Germany is also one of the ten largest exporters to the USA.
According to the German Steel Federation, the USA is the most important sales market for the European steel industry. Around four million tons were exported to the USA from the entire EU in 2023. Germany alone exports around one million tons annually, mostly special steel. Germany is therefore the largest steel producer in the EU.
Exceptions? Unclear
The USA mainly imports aluminum from Canada, the United Arab Emirates, China and South Korea. Germany was only the 16th most important country of origin in 2024 - with relatively small quantities.
It was not immediately clear whether there would also be exceptions to the increased tariffs - for example for Canada and Mexico, with which the USA forms a North American free trade zone. There were no exceptions to the original 25% tariffs imposed in February.
Trump's tariffs keep the courts busy
Trump has already announced, threatened or implemented numerous other tariffs. In addition to a new punitive levy of ten percent of the value of goods on almost all imports, he has also announced specific, higher tariffs on imports from many countries. This also affects major trading partners such as China and the European Union.
Various processes are currently underway regarding the legality of many tariffs, and no final decisions have yet been made. The additional duties on steel imports are not affected by the legal dispute.
EU wants to conclude "deal" with Trump
Trump has already made it clear that he intends to take the dispute over the tariffs to the Supreme Court in Washington if necessary. The president has shifted the majority of votes of the nine judges on the court far to the right during his first term of office with several replacements. But even the conservative judges do not always rule in his favor.
The threat of new tariffs for certain trading partners is sometimes just a negotiating tactic for Trump to negotiate the best possible "deal", i.e. to obtain concessions from trading partners. Many of the trading partners he has imposed new tariffs on, including the European Union, are already negotiating with the US to avoid new tariffs. In the case of the EU, Trump recently suspended the threat of additional tariffs amounting to 50% of the value of imports until the beginning of July to allow more time for negotiations.
