The European Union has strongly opposed the US tariffs on steel and aluminum, asserting they are unjustified and detrimental to both economies. The EU Commission plans to protect its industries from these measures, while Chancellor Scholz urges a unified response. Concerns about economic uncertainty arise from the European Central Bank, with warnings of potential trade wars. Thyssenkrupp reports minimal impact, as most of its steel is sold within Europe, while the US remains a vital market for German steel exports.
The EU Responds Firmly to US Tariffs on Steel and Aluminum
The European Union has expressed strong opposition to the newly announced tariffs on steel and aluminum imports by US President Donald Trump. The EU Commission, which oversees trade policy, declared in Brussels that there is no valid reason for these tariffs on EU exports. “We will take action to safeguard the interests of European businesses, employees, and consumers against these unwarranted measures,” they stated.
Ursula von der Leyen’s leadership emphasized that these tariffs would be deemed “illegal” and “economically detrimental” from the EU’s standpoint. The statement further explained that such tariffs would effectively tax American citizens, raise costs for businesses, and contribute to inflation. Moreover, these tariffs could create economic uncertainty and disrupt the efficiency and integration of global markets.
In light of the potential tariffs, Chancellor Scholz has called for a unified and resolute stance from Europe.
Unwavering Stance on Tariffs Affecting All Countries
President Trump announced that a 25 percent tariff would be imposed on steel and aluminum imports into the United States. This decision is anticipated to be finalized soon, with Trump informing reporters during a flight that it would apply universally, including to neighboring countries Canada and Mexico, with no exceptions.
Additionally, Trump plans to implement “reciprocal tariffs,” meaning that the US will impose tariffs on goods from countries that impose tariffs on US exports. “It’s straightforward: If they charge us, we will charge them too,” the President explained.
When questioned about the timeline for these “reciprocal tariffs,” Trump replied, “Almost immediately.” However, the exact timeline for the steel and aluminum tariffs remains unclear, with further details expected to be announced later this week.
Concerns from the ECB and Germany
The European Central Bank (ECB) has raised alarms about the potential for “enormous” economic uncertainty stemming from these tariffs. ECB Vice President Luis de Guindos warned against the onset of a trade war, stating that tariffs could lead to a “supply shock” that would significantly hinder global economic growth. He advised a cautious and intelligent approach in response, as initial announcements do not always translate into action.
The German government is equally apprehensive about the potential economic ramifications of US tariffs. A spokesperson from the Federal Ministry of Economics indicated that these tariffs would adversely affect Germany’s export-driven economy. Both the EU and German officials are actively taking measures to avert this situation while preparing for worst-case scenarios. “This situation is reminiscent of the tariffs imposed during President Trump’s first term,” the spokesperson remarked.
During that period, the US also placed tariffs on steel and aluminum from the EU, prompting retaliatory tariffs from the EU on American products such as jeans, bourbon, motorcycles, and peanut butter. The spokesperson noted that an agreement was eventually reached, resulting in the suspension of those tariffs.
Thyssenkrupp’s Resilience
The steel and industrial giant Thyssenkrupp has stated that it does not foresee significant impacts from Trump’s recent announcements. “Based on our current understanding, the proposed tariffs on US imports would have minimal effects on our operations,” the company reported from Essen, particularly regarding the steel tariffs.
“Thyssenkrupp’s primary market for steel is in Europe. Our exports of steel products to the US are minimal and primarily consist of high-quality items that hold a strong market position,” a company representative explained. Thyssenkrupp is recognized as Germany’s largest steel producer, with Duisburg being its key production site.
US Market’s Significance for German Steel
The United States represents a crucial export market for Germany’s steel industry. However, approximately 80 percent of steel exports from Germany are directed to other EU nations. According to the German industry association Wirtschaftsvereinigung Stahl, Germany stands as the largest steel producer within the EU, ranking seventh globally, following countries such as China, India, Japan, the US, Russia, and South Korea. Overall, the US is the most vital sales market for German exporters.
Data from the American Iron and Steel Institute (AISI) indicates that for 2024, the US primarily sources steel from Canada, Brazil, and Mexico, with Germany and China also ranking among the top ten steel import sources.
A Temporary Delay for Canada and Mexico
Last week, a potential North American trade dispute that could have significant global economic repercussions was momentarily averted. Trump secured concessions from Canada and Mexico regarding border security just hours before the proposed 25 percent tariffs on their goods were set to take effect. In exchange, he postponed these trade restrictions for at least 30 days.
This report was initially published by tagesschau on February 10, 2025, at 14:00.