The announcement of the American President Donald Trump to raise tariffs of 25 percent on the import of steel and aluminum is politically causing unrest in Germany and Europe. Industry representatives, however, reacted rather calmly. In Brussels, the European Commission responsible for trading policy in the EU tried not to let the conflict escalate. At the same time, she signaled that the tariffs would not simply be accepted. “We will act to protect the interests of European companies, employees and consumers from unjustified measures,” said a statement. In Berlin it was said that the preparations were made in the event of cases. The EU and the Federal Government continued to campaign for the tariffs that do not occur, said a spokesman for the Federal Ministry of Economics. The whole thing is known from the scenario from President Trump’s first term. At that time there had also been American tariffs on steel and aluminum. The EU had reacted to American products such as jeans, bourbon whiskey, motorcycles and peanut butter. The foreign trade statistics show that German companies carried out iron and steel worth 30.3 billion euros in 2023, of which around 1.1 billion euros in the USA. This corresponds to a share of the total export of less than 0.1 percent. If you count from iron and steel, the corresponding export to the United States adds to almost 4 billion euros or a quarter percent of the total German export. The export of aluminum and were from it to the United States was 682 million euros. The President of the Foreign Trade Association BGA, Dirk Jandura, responded calmly to Trump’s announcement. If the demand for 25 percent tariffs on steel and aluminum remains, the consequences for Europe were limited, said Jandura. “The EU had time to prepare,” said Jandura.Trump’s announcement that the steel industry in Germany and the EU “at the wrong time”, Gunnar Groebler, the President of the German Steel Branch Association of the Stahl. Groebler is the head of the second largest German steel company Salzgitter. According to the association, the EU exports around four million tons of steel to the USA annually. The number includes steel products such as bridges, sheets or wire, but not products that contain a lot of steel, such as railings or autos.deutschland, according to association information, sends 1 million tons of steel to the United States a year. That corresponds to about four percent of the total German stahlexports, it said. The American market is of great importance for Germany. As part of the imposition of punitive tariffs against the EU in 2018 and 2019, European exports towards the USA had halved – from 5.2 million tons of steel in 2018 to 2.5 million tons of steel in 2020. “The aluminum industry was not pleased with Trump’s announcement. “Such a step does not know any winners on any side of the Atlantic,” says a spokesman for the Aluminum Germany industry association. The America business of German companies has lost significantly since Trump’s first term. “In the years until 2017, we exported around 85,000 tons per year from Germany to the USA. In 2023 it was around 40 percent less. ”Steel business association fears indirect“ detour effects ”due to tariffs. A “consistent adaptation of the protective measures, the so-called EU safety courses, is now quickly needed,” says Groebler. Otherwise, the quantity of the quantity to Europe would further strengthen the existing import pressure through overcapacity from China. The aluminum association argues similarly. The effects on individual German companies are very different. The Essen industrial giant Thyssenkrupp expects “only a very limited influence” on its business. “The main market for the steel of Thyssenkrupp is Europe,” said the company. The export of steel products to the United States is “negligible”. The majority of Thyssenkrupp’s sales in the USA come from the trading business and the car delivery. “Much of the production for US customers takes place within the USA,” it said. This focus on local production minimizes possible customs risks and similar regulatory changes. Quota agreement in March expired. “In principle, we are for free trade and against tariffs,” explained the Duisburg steel dealer Klöckner & Co. “However, we mainly buy where we also sell-in Europe for the European market and in the USA for the US market.” Klöckner & Co is now making around 60 percent of its total sales in North America. Due to tariffs, prices would tend to rise. “Basically, as a dealer, we benefit from a higher price level,” said a spokesman. Trump had announced on Sunday that from this Monday Import dumplings to impose the import of steel and aluminum from all countries of 25 percent. This will override previous special regulations. During the week, Trump also plans to introduce further reciprocal imports with which he reacts to import duties of the trading partners in the same height. Trump aims, for example, on tariffs for normal passenger cars. So far, the EU has raised 10 percent on imports. The United States occupies the car import with 2.5 percent, but it occupies the import of SUV with 25 percent inch. More on the subject of further advertisements for America’s steel imports apply on paper 25 percent import duties that have been overridden by exemptions. In the first Trump government, exceptions were agreed for the most important delivery countries Canada, Mexico and Brazil. Under President Joe Biden, exceptions to the EU, Great Britain and Japan were negotiated. The agreement provides for a quota system for the EU: Up to a certain amount, Europeans deliver duty -free, and customs surcharges are also used for quantities. This agreement would have lost its validity at the end of March. The steel customs mainly meets Canada, whose producers, according to the International Trade Commission, have by far the largest suppliers have been to Mexico, Brazil, South Korea, Vietnam, Japan and Germany in the last twelve months. Especially for Canada, the increase in tariffs to aluminum from 10 percent to 25 percent are particularly serious for Canada. Canada contributes around half of the imports here. There was initially no statement from the Canadian government. Industrial representatives and top politicians, however, demanded harsh countermeasures.
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