Trump's new customs hammer: 50% on steel and aluminum - what now?

Trump's new customs hammer: 50% on steel and aluminum - what now?

USA - President Donald Trump drastically doubled the import duties on steel and aluminum yesterday. The new duty rate is now 50 percent, while 25 percent were previously raised. This regulation has been in force since midnight (local time; 6:01 a.m. CEST). Imports from Great Britain are excluded from this increase and are still taxed at 25 percent, which is due to an existing trading pact between the USA and Great Britain. Trump’s decision to increase the tariffs takes place in a context in which numerous similar measures have already been taken to improve trade agreements. This could significantly change the market situation in the USA and beyond.

The latest customs increases could not only make imports difficult, but also raise prices for consumers. Economists warn that this could have an impact on numerous products, including cars, kitchen appliances and canned goods. As early as 2024, the United States was the second largest steel importer according to the EU, and the most important steel domestic countries are Canada, Brazil and Mexico. Germany is one of the ten largest exporters of steel. The aluminum imports mainly come from Canada, the United Arab Emirates, China and South Korea.

reactions from the EU

The EU's reaction to the customs increase is so far unclear. The EU Commission criticized Trump's announcement and threatened its own reaction before summer. Talks between the EU and the USA are rated as "very constructive", and a meeting between EU trade commissioner Maroš Šefčovič and US trade officer Jamieson Greer is planned in Paris. It is expected that the EU could impose counter-tariffs on US products such as jeans, motorcycles and beef. Further measures could also affect industrial and agricultural goods such as cars and whiskey.

In addition, the EU industry has already expressed concerns that the US tariffs could result in flooding the market with Chinese steel. In order to counteract these threats, the EU Commission is planning an action plan to support steel and aluminum companies. As part of this plan, existing protective measures are to be tightened and possibly reduced energy taxes to zero in order to secure the competitiveness of these industries.

conversations and perspectives

During a meeting of the European Parliament in February 2025, the possible effects of customs measures were discussed on transatlantic relationships. Leading EU MPs pushed for a continuation of the cooperation. Maroš Šefčovič criticized the US tariffs as harmful to companies and consumers and emphasized the importance of an open trade relationship. Bernd Lange, Chairman of the Committee on International Trade, also pointed out the possibility of counter -tariffs if the situation does not relax.

Overall, the uncertainty remains high, both about the direct economic consequences of the new tariffs and the possible answers from the EU. Analysts will observe the developments closely, in particular the upcoming negotiations and discussions between the United States and Europe.

The current situation illustrates the challenges that the global trade relationships face, especially in the context of the competition between the USA and other metal producers. We will continue to pursue the effects of US politics on Europe and the global economy.