The German Steel Federation reacted on Saturday with concern to US President Donald Trump’s move to double tariffs on steel imports into the United States from the current 25% to 50% of the value of goods.

“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, the head of the industry association.

“A 50% 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,” said Rippel.

“On the one hand, the measures will have a greater impact on our direct exports to the US market.”

However, the indirect effect is even more problematic, she noted. Traditional supplier countries risk losing access to the US market as a result of the “exorbitant tariffs” and would consequently divert their steel to the EU market.

This would further exacerbate the already considerable import pressure on Europe: “Every third [metric ton] of steel is already imported today,” said Rippel.

“Unfortunately – and very few people know this – also from Russia, which supplies three to four million tons of steel to the EU every year.”

Balancing trade protection and ‘smart negotiations’

Trump announced the planned doubling of tariffs on Friday in a speech to steel plant workers in the US state of Pennsylvania, saying the additional fees for imports would boost the national steel industry.

Shortly afterwards, he said on his Truth Social platform that tariffs on aluminium would also be doubled to 50%, with the new rates to apply from June 4.

According to Rippel, it is now essential for the European Commission to maintain a balance between tough trade defence and smart negotiations.

Source: dpa.com