They are “illegal” and “economically counterproductive”: the EU sharply criticized the new tariffs announced by US President Trump on steel and aluminum. The federal government reacted concerns.
The European Union has warned US President Donald Trump about the introduction of new tariffs on steel and aluminum imports. “The EU sees no justification for the imposition of tariffs to its exports,” said the EU Commission in Brussels responsible for trade policy. “We will act to protect the interests of European companies, employees and consumers from unjustified measures.”
The authority led by Ursula von der Leyen also emphasized that the imposition of tariffs from the EU’s perspective would be “illegal” and “economically counterproductive”. “With the introduction of tariffs, the US government would tax its own citizens, increase the costs for companies and heat inflation,” the explanation said. In addition, tariffs reinforced economic uncertainties and disrupt the efficiency and integration of global markets.
No exceptions for Canada and Mexico
Previously, US President Donald Trump had announced that it would take steel and aluminum imports to the United States with tariffs of 25 percent. They are to be announced at the beginning of this week, as the Republican explained to journalists during a flight. They should affect all countries. Exceptions would also not apply to the neighbors Canada and Mexico.
He will also announce “mutual tariffs” (Reciprocal Taiffs). This means that the USA would raise import duties on products if another country imposes tariffs on US goods. “Quite simply: if you calculate something to us, we will charge you something,” said the US President.
When asked when a reporter asked when the “mutual tariffs” would come into force, Trump replied: “Almost immediately.” It is unclear when the tariffs for steel and aluminum grab. The President wants to announce details this week.
ECB warns of “enormous” uncertainty
From the European Central Bank’s perspective (ECB), the possible US tariffs could trigger an “enormous” economic uncertainty. It is important to avoid a trade war, said the Vice President of the ECB, Luis de Guindos, the Spanish broadcaster TVE. The introduction of tariffs would trigger a “offer shock” and thus impair global economic growth “fundamentally”. The Europeans should be careful in their reaction: Sometimes the original announcements would not be implemented. Therefore, one has to proceed “prudently and intelligently”, emphasized de Guindos.
Federal government worried
The federal government also looks at the economic effects of possible US tariffs. A spokesman for the Federal Ministry of Economics stated that tariffs would hit the German export -oriented economy. The EU and the federal government continued to commit themselves to this that it does not happen. At the same time, preparations were made in the event of cases. “The whole thing is known from the scenario from President Trump’s first term,” said the spokesman.
At that time there had also been US tariffs on steel and aluminum compared to the EU. The EU had reacted to US products such as jeans, bourbon whiskey, motorcycles and peanut butter. The spokesman pointed out that the EU then managed to communicate with Trump, so that the tariffs had been suspended again.
Thyssenkrupp sees no big effects
According to Trump’s announcement, the steel and industrial goods group Thyssenkrupp does not see any major effects. “According to the current state of knowledge, the announced tariffs on imports to the USA would only have a very limited influence on Thyssenkrupp’s business,” said the company in Essen. This applies in particular to the announced tariffs on steel.
“The main market for the steel of Thyssenkrupp is Europe. The export of steel products from Thyssenkrupp Steel Europe to the USA is negligible and primarily affects high -quality products with good market position,” said a speaker. The steel division of Thyssenkrupp is Germany’s largest steel manufacturer. The most important production location is Duisburg.
USA are an important sales market
The United States is a very important export market for the German steel industry. However, around 80 percent of steel exports from Germany go to other EU countries. According to the German Industry Association of Stahl, Germany is the largest steel producer in the EU and is seventh worldwide behind China, India, Japan, the USA, Russia and South Korea. Excientally, the USA is the most important sales market for German exporters.
According to the American Iron and Steel Institute (AISI) industry association, the United States obtained its steel for 2024, especially from Canada, Brazil and Mexico. Germany and China also rank in the top 10 of the countries of origin of steel imports.
Defense for Mexico and Canada
At the beginning of last week, a North American trade dispute with uncertain consequences for the global economy was initially averted. Trump was just a few hours before the dated dweller of 25 percent on goods from Mexico and Canada, especially when it comes to concessions from the neighbors. For this he pushed the trade restrictions on for at least 30 days.
