The doubling of US tariffs on steel imports announced by President Donald Trump marks a new level of escalation in the transatlantic trade conflict, says Germany’s steel federation, WV Stahl.
“It is therefore essential for the EU Commission to strike a balance between tough trade defence and smart negotiations,” says Kerstin-Maria Rippel, managing director of WV Stahl. “On the one hand, an effective trade defence instrument for the European steel industry is needed in the near term. Secondly, negotiations on a bilateral steel agreement with the USA are important.”
In a statement sent to Kallanish, the federation warns that a 50% US levy on steel trade is a massive burden for the European steel industry. It will further increase pressure on the already crisis-ridden economy and affect the industry in many ways. On the one hand, the measures will place a greater burden on direct exports to the US market.
“The indirect effect is even more problematic: traditional supplier countries are at risk of losing access to the US market, and will consequently redirect their steel to the EU,” Rippel warns.
This will further exacerbate the already considerable import pressure on Europe, with one third of steel on the European market already imported. “Unfortunately – and very few people are aware of this – this includes material from Russia, which supplies 3 to 4 million tonnes of steel to the EU every year,” she continues.
Meanwhile, the European Commission has stated that Trump’s announcement undermines efforts to negotiate a way out of the trade dispute, and will increase costs for consumers on both sides of the Atlantic. Media reports cite a spokesman as saying the Commission is prepared to raise counter-tariffs earlier than 14 July – the date given earlier for the enforcement of EU reciprocal tariffs on the US.
Christian Koehl Germany
