The German steel industry could face a critical blow if U.S. President Donald Trump follows through on plans to double tariffs on steel and aluminum imports from the European Union.
The proposed increase—from 25% to 50%—is set to take effect on July 9 and would add significant pressure to an industry already grappling with soaring energy costs and the challenges of decarbonizing production.
Germany’s leading steelmaker, Thyssenkrupp, is currently undergoing a major overhaul that includes cutting 11,000 jobs. Salzgitter, another major player, has announced cost-cutting measures aimed at saving €500 million annually by 2028.
“If the steel tariffs really go into effect, it will further worsen the already fragile state of the German steel industry,” said Gerhard Erdmann, head of the Steel Industry Employers’ Association, in an interview with BILD.
Erdmann also warned that retaliatory trade measures from countries like China and India could result in low-cost steel flooding European markets, posing what he described as “a catastrophe for German producers.”
The ripple effects of U.S. tariffs could extend far beyond the steel sector. German manufacturers in automotive and machinery industries, which depend heavily on steel and are key exporters to the U.S., may also face declining sales.
“If our car and equipment manufacturers suffer from falling sales due to the tariffs, that will also hit our steel mills with full force. However, since steel is strategically important, it will still be produced in Germany ten or even twenty years from now,” Erdmann added.
