U.S. tariffs on imported steel products are imposing threats on German steel producers' exports to the American market, with the EU claiming retaliatory tariffs on 26 billion euros (about 28 billion U.S. dollars) worth of U.S. goods in response.
The European Commission announced the potential countermeasures on Wednesday, in response to the expiration of prior exemptions and the reinstatement of 25 percent tariffs on all steel and aluminum imports by the U.S.
According to the European Union Industry Association, around 4 million tons of EU steel were exported to the U.S. in 2023, with a quarter of that originating from Germany. The Benteler electric steel mill in Lingen, northwest Germany, which produces raw pieces of steel from scrap metal, is among the companies feeling the impact.
"We produce approximately 650,000 tons of steel each year. That means we make over 2,000 tons each day," said Andreas Stadtherr, Lingen Plant Manager, Benteler Steel.
These steel billets are then transported by train to other Benteler facilities in Germany, where they are transformed into hot-rolled and cold-drawn tubes for various industries across Europe, including automotive, energy, and construction. Some products are even sent to the company's tube plant in Louisiana.
"Tariffs will of course affect the products that we supply from Europe, i.e., the steel that we supply from Lingen to the U.S.," said Thomas Michels, CEO of Benteler Steel.
Even before the tariffs were enacted, the German steel industry was grappling with rising energy costs, intensifying competition, and expenses related to decarbonization, all of which were squeezing profit margins. U.S. tariffs risk distorting the market further, as steel that would have been destined for the American market is now being diverted to other regions, including Europe.
"Many suppliers who currently supply the USA from Asia, from China will look for new markets and will try to supply more products to Europe. I think we should enter into talks with the US to find a good solution for the EU, Germany and the US. The EU must take action and set up certain border zones to prevent dump steel from coming into the EU," said Michels.
While the European Commission's announcement of counter-tariffs on U.S. goods indicates a firm stance, it also expressed a willingness to negotiate. This position resonates with many German steelmakers, who argue that the tariffs are counterproductive even for the U.S. steel industry.
"If you consider that the U.S. imports up to 21 million tons of steel, it won't be possible to produce these 21 million tons in the U.S. because the capacity simply doesn't exist," said Michels.
Some analysts predict that rather than protecting the U.S. steel industry, these tariffs may ultimately increase costs for American consumers.
US steel tariffs threaten German steel exports, spark EU retaliation
Officials and scholars from the Latin America and Caribbean (LAC) region have welcomed Chinese President Xi Jinping's keynote address at the opening ceremony of the fourth ministerial meeting of the China-CELAC Forum in Beijing on Tuesday.
They said that the speech laid out the practical achievements and broad prospects of the China-LAC community with a shared future, put forward new initiatives and actions for the development of China-LAC relations, and signaled the direction for both sides to achieve common development and revitalization and write a new chapter in China-LAC relations.
"The projects designed by China for this region meet the needs of Latin American countries. In terms of development and investment projects, such as infrastructure, clean energy and digitalization, they are very important for Cuba. And projects such as the planned Brazil-Peru bi-oceanic railway and the expansion of the port of La Guaira in Venezuela directly and indirectly create jobs and benefit Latin American people," said Eduardo Regalado, a researcher at the International Policy Research Center of Cuba.
Uruguayan President Yamandu Orsi said that his country is committed to carrying forward the positive momentum of the China-CELAC Forum when it assumes the rotating presidency of CELAC from Colombia in 2026.
"Uruguay is looking forward to taking over next year and continuing the tradition of the past decade. To this end, we must strengthen the development of these platforms for promoting multilateralism, and carefully protect the achievements made by both sides at this year's meetings. We should not only achieve development in the field of economy and trade, but also contribute to promoting world peace," he said.
Other politicians from Latin America pointed out that China and LAC countries are all important members of the Global South, and are comprehensive cooperative partners featuring equality, mutual benefit and shared development. In a profoundly changing world, the strengthening of China-LAC solidarity and collaboration is an example of true multilateralism and sets a model for South-South cooperation, some said.
"President Xi Jinping has a broad vision for global development. China has made amazing development achievements, which have become a part of modern society, including technology, artificial intelligence and clean energy. The inflow of Chinese investment, such as for the construction of Chancay Port, has activated development in a variety of sectors [in Peru]," said Edgar Tello, a Peruvian congressman.
"President Xi Jinping announced the strengthening of South-South cooperation and the launch five programs. It will give more Latin American people the opportunity to study in China. China will provide a 66-billion-yuan (about 9.16 billion U.S. dollars) credit line to provide financial support for the development of LAC countries. And China will promote the civilization program to carry out cooperation in archaeology and civilization research. Such mutual cooperation and win-win initiatives between China and LAC countries are inspiring. We in Honduras are sincerely delighted with the series of cooperation plans announced by President Xi," said Rasel Tome, vice president of the National Congress of Honduras.
Officials, scholars praise Xi's keynote speech at China-CELAC Forum
