Doubling of US tariffs on steel imports will put pressure on European steel industry – WV Stahl

The doubling of US tariffs on steel imports will put enormous pressure on the European steel industry. This is stated in a statement by the German steel association WV Stahl.

According to Maria Rippel, CEO of WV Stahl, this step marks a new level of escalation in the transatlantic trade conflict.

According to her, on the one hand, these measures will put a greater burden on European direct exports to the US market. The indirect impact is even more problematic, as traditional supplier countries risk losing access to the US market due to exorbitant tariffs and, as a result, will reorient their steel to the EU market.

“This will further increase the already significant import pressure on Europe. Every third ton of steel is already imported. Unfortunately – and few people know this – it comes from Russia, which supplies 3 to 4 million tons of steel to the EU every year,” Rippel said.

WV Stahl emphasized that it is very important that the European Commission finds a balance between tough trade protection and reasonable negotiations. In particular, an effective trade defense tool for the European steel industry is needed in a timely manner, and intensive work is currently underway. On the other hand, negotiations on a bilateral steel agreement with the United States are important, and the industry association supports the European Commission’s efforts. German steelmakers also note the need for support from the federal government in Brussels.

On May 30, US President Donald Trump announced at the US Steel plant in Pennsylvania that he would set tariffs on steel imports to the United States at 50%, doubling the current rate, to protect the country’s steelmakers. Later, he clarified on social media that the increased tariff rate would take effect on June 4.

Trump’s announcement was welcomed by the American Iron and Steel Institute (AISI) and the American Steel Association. They cited the growth of global overcapacity led by China and the need to protect the US market.

As GMK Center reported earlier, on March 12 this year, US tariffs on all imported steel and aluminum came into effect at 25%.