Red alert! New US tariffs endanger the German aluminum industry!

Red alert! New US tariffs endanger the German aluminum industry!

US President Donald Trump plans to drastically increase tariffs on aluminum and steel, doubling them to 50%. These new customs regulations are due to come into force on Wednesday. The Aluminum Germany industry association is already expressing concern about the possible impact on the German aluminum industry and emphasizes that the new measures could put additional strain on the industry, which is already in a tense situation, as the Stuttgarter Nachrichten reports.

German aluminum exports to the USA amount to around 51,000 tons, which only accounts for two percent of annual production in Germany. The association warns that the potential indirect impact of the tariffs could result in traditional supplying countries losing access to the US market and having to focus more on the European market. This would further increase import pressure on European industry.

EU reactions to US tariffs

As part of the ongoing trade conflicts, the EU Commission plans to impose tariffs on US goods worth 26 billion euros from April, in direct response to US tariffs of 25 percent on aluminum and steel imports. The first EU extra tariffs affect products such as bourbon whiskey, jeans, motorcycles, boats and peanut butter. These measures trigger a significant trade dynamic in which the EU also has to react to US tariff policy, as the Tagesschau reports.

Commenting on the situation, Ursula von der Leyen, President of the EU Commission, called the tariffs “bad for business and even worse for consumers.” These new US tariffs affect Europe's exports worth 26 billion euros, which represents about 5 percent of the EU's total goods exports to the US. In addition, US importers must expect additional import tariffs of up to 6 billion euros. The EU's response involves a strategic approach that will be implemented in two phases: the first step affects goods worth around 8 billion euros, the second step could even include an additional 18 billion euros.

International dependencies and trade dynamics

The US tariffs on steel and aluminum, which Trump has justified on the grounds that these imports threaten US national security, raise numerous questions. Bernd Lange from the SPD described this argument as absurd and called for a constructive discussion. About a quarter of the steel used in the United States is imported; for aluminum it is over 40 percent. The main suppliers are Canada, Brazil and Mexico, but Germany and China are also among the top 10 countries of origin.

The USA is the most important sales market for the European steel industry. Around 10 percent of all steel and 15 percent of all aluminum imports into the USA come from the EU. Given the impending tariff increases, Ursula von der Leyen's willingness to find a negotiated solution with the US government is crucial. Trade Commissioner Maros Sefcovic should resume talks with the USA in order to defuse growing tensions and create a constructive basis for dialogue, as the Tagesschau notes.