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US steel tariffs threaten German steel exports, spark EU retaliation

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US steel tariffs threaten German steel exports, spark EU retaliation

2025-03-15 16:13 Last Updated At:18:17

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

US steel tariffs threaten German steel exports, spark EU retaliation

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Nvidia CEO pledges to continue serving Chinese market

2025-04-17 21:22 Last Updated At:22:07

Nvidia CEO and founder Jensen Huang pledged on Thursday to make significant efforts to serve the Chinese market, where the chipmaker has maintained a presence for the past 30 years.

Huang made the commitment during a meeting with Ren Hongbin, chairman of the China Council for the Promotion of International Trade (CCPIT), in Beijing. His vow comes at a time when the Trump administration has recently tightened chip export rules to China amid the global race for AI dominance.

Huang noted that the new export restrictions on AI chips to China have significantly impacted Nvidia's business, but stressed that the company remains committed to long-term operations in the country.

"The increased restriction has impacted our company significantly. We've grown up in China and China has watched us in the last 30 years. Of course, it's a very large market interactions and working and serving the Chinese companies. And so it's made us both better. And so we're going to continue to make significant effort to optimize our products that are compliant with the regulations and continue to serve the Chinese market," Huang said.

According to Nvidia, the company expects to take a 5.5 billion U.S. dollar hit from the new clampdown on exports of H20 processors to China.

Nvidia CEO pledges to continue serving Chinese market

Nvidia CEO pledges to continue serving Chinese market

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