US tariffs on steel: price increase and EU reaction are imminent!

US tariffs on steel: price increase and EU reaction are imminent!

From June 3, 2025, the US import duties on steel increase drastically to 50 percent. This measure was announced by US President Donald Trump, with the aim of correcting the commercial liche weights and strengthening the domestic steel industry. The duty rate, which was previously 25 percent, is thus doubled and could not only make imports difficult, but also the prices in various industries, including construction and automobile. According to vienna.at Numbers of aluminum at physical markets the price at the London metal exchange plus, whereby the price for this premium 2025 by more than 120 percent has increased.

The USA are net importers of steel and draw about a quarter of its steel needs mainly from Canada and Mexico. The aluminum share of imports in particular is around 50 percent. In 2024, Canada exported 3.2 million tons of aluminum to the United States. While the tariffs have already increased the prices for customers of these materials, stahlipperte Josh Spoores emphasizes the need for imports to cover demand.

EU under pressure

The announcement of the customs increase comes at a time when the EU industry is already concerned about a possible flooding of the market with Chinese steel. This could be done in response to the US tariffs. The EU Commission is therefore planning an action plan to support the steel and aluminum companies, such as Tagesschau.de . With this plan, imports are to be reduced by up to 15 percent. EU industrial commissioner Stéphane Séjourné announced that it will tighten existing protective measures against cheap steel imports on April 1st.

In addition, the possibility is checked to reduce the taxes on energy for the steel industry to zero. There should also be CO2 taxes for imports to prevent the relocation of CO2 emissions abroad. Thyssenkrupp Steel Europe welcomes this action plan, but sees concrete measures as essential. IG Metall expresses concerns that the plan is too vague in many points.

effects on the German steel industry

The German steel industry plays a central role in the country's industrial value chains. In 2022, sales were around 55.2 billion euros and around 90,000 people were employed in this industry. In the same year, Germany was the seventh largest raw steel manufacturer worldwide with raw steel production of 36.8 million tons. Most of the steel is produced in integrated steelworks, while a third is generated via the electrical tank route.

The federal government has already presented a concept of action for a climate -neutral steel industry. As part of this concept, it is also required to create the same competitive conditions worldwide. The international competition in the steel market is high, which could have a negative impact on prices. The Federal Government sees the potential for a great change in the area of ​​steel and metal, especially with regard to innovations that support other industries.