German Steel Industry Bracing for Impact of US Tariffs
A recent analysis by the Kiel Institute for the World Economy (IfW) suggests that the imposition of US tariffs on steel and aluminum imports will have a significant impact on the German steel industry. According to the study, German steel exports to the United States are expected to decline by around 35% in the next 12 months as a result of the increased tariffs.
US President Donald Trump recently doubled the import duties from 25% to 50%, a move that could lead to a 20% decline in German steel exports if the previous forecast of a 25% tariff increase had been implemented, the IfW analysis found. The institute predicts that the production of the steel industry in Germany will shrink by as much as 5.1% due to the reduced exports, a more severe decline than the previously estimated 2.7%.
However, the risk of alternative steel suppliers from other regions shifting their exports to Germany is considered low by the researchers, as the new tariffs apply to nearly all producers worldwide, leaving the competitive position of German steelmakers largely unaffected.