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India Gazette
4 days ago
- Business
- India Gazette
Economic Watch: U.S. tariff hikes deal blow to EU metals industry
As the U.S. tariff hike on steel and aluminum takes effect, European producers voice concerns over rising costs and industry impact. BRUSSELS, June 6 (Xinhua) -- The U.S. government's decision to raise tariffs on steel and aluminum imports to 50 percent took effect Wednesday, escalating a trade dispute that threatens to further weaken the EU's metals sector and disrupt downstream manufacturing across the bloc. European producers have warned that the steep new duties will inflict serious damage, compounding existing pressures and driving up costs for manufacturers dependent on competitively priced raw materials. The latest levies, applied broadly to nearly all U.S.-imported steel and aluminum, followed a 25 percent tariff introduced in March. While that initial measure had limited overall impact on EU exports to the United States, analysts say doubling the rate will effectively price many European producers out of the American market. "Most of the 3.8 million tonnes of EU steel exports to the United States are now under a de facto import ban: at a 50 percent blanket tariff," said Axel Eggert, director general of the European Steel Association (EUROFER). "Even Europe's highest-quality, most competitive steel products will be priced out," Eggert said following the implementation of the new tariffs. Earlier in March, EUROFER had criticized Trump's "America First" trade policy, warning it could become the "final nail in the coffin" for Europe's steel industry. The association noted that the overall market situation for European steel is much worse than in 2018, as the new measures remove all product exemptions and tariff rate quotas that the EU had previously negotiated. With EU steel exports to the United States already having fallen by 1 million tonnes, the bloc stands to lose at least another 1 million tonnes. Moreover, the tariff now covers "derivative" steel products, potentially reducing export opportunities for a further 1 million tonnes, EUROFER said. Germany, the EU's largest steel producer, is already contending with surging energy costs and delays in transitioning to low-carbon "green steel" technologies. Industry giants such as Thyssenkrupp and Salzgitter have unveiled major restructuring and cost-cutting plans. Thyssenkrupp plans to break up its business and cut around 11,000 jobs, while Salzgitter aims to reduce costs by 500 million euros (approximately 571.95 million U.S. dollars) by 2028, having already saved about 130 million euros (148.36 million dollars). Gerhard Erdmann, managing director of the German Steel Employers' Association, told Bild newspaper that it remained unclear whether Washington would fully enforce the higher tariffs. However, he warned that if implemented, they would "further aggravate the already precarious state of Germany's steel industry." He emphasized that the real threat lies not only in the loss of direct sales to the United States, but also in broader ripple effects, as key German industries -- such as automotive and machinery manufacturing -- depend heavily on steel and maintain strong export ties with the United States. "If German car and machinery makers see sales decline due to tariffs, the consequences will hit our steel mills with full force," he said, warning of a painful and far-reaching industry restructuring. European aluminum producers have voiced similar concerns. The industry association European Aluminium condemned the U.S. decision to double tariffs, warning that it would "further destabilize transatlantic trade relations and disrupt long-standing supply chains between two key economic partners." In a statement, the association expressed deep concern that the move would "indirectly fuel scrap outflows from Europe and add further distortion to an already fragile trade environment." Gavran Igor, an economic analyst from Bosnia and Herzegovina, said the tariff hikes reflect a protectionist mindset that violates international trade norms and undermines global economic stability. He told Xinhua the measures would "inevitably trigger retaliatory tariffs from other countries and ultimately harm the U.S. economy most in the long run," adding that such actions erode trust and treat global partners as subordinates rather than equals. Igor called on major economies -- including China, the EU, Japan and India -- to take the lead in building a fair, rules-based global trading system. Ljubo Jurcic, the former Croatian Minister of Economy, echoed the concern, noting that history shows tariff wars hurt the world economy and fuel uncertainty. He pointed out that while the Trump administration claimed high tariffs would protect domestic industry and reshore supply chains, experience from his first term showed they failed to boost the U.S. economy -- instead, they ended up hurting U.S. consumers. European Commissioner for Trade and Economic Security Maros Sefcovic warned Wednesday that Washington's decision to raise tariffs on steel and aluminum "clearly doesn't help the ongoing negotiations" and risks undermining recent progress. He emphasized that the EU stands ready to defend its interests and will do its utmost to rebalance bilateral trade should negotiations collapse.
Euronews
6 days ago
- Business
- Euronews
European steel sector on high alert amid slow-moving trade negotiation
The EU steel sector was on high alert on Wednesday following the implementation of 50% US tariffs on steel and aluminium, a move that might divert global steel imports formerly heading to the US towards the EU. "With the doubling of US blanket tariffs on steel to 50% without exceptions, we expect massive deflection of the 27 million tonnes of steel previously destined for the US towards the European market,' director general of the European Steel Association (EUROFER) Axel Eggert warned in a statement. 'We are being flooded by cheap foreign steel,' he added, 'without swift action, we will not just be underwater — we will drown.' Kerstin Maria Rippel, the chief executive of the German Steel Federation said the 50% tariffs marked 'a new level of escalation' in the EU-US trade conflict. 'A 50-percent tariff on steel exports is a massive burden on our industry, as it will increase pressure on an economy already in crisis and will impact our steel sector in multiple ways,' Rippel said. On Monday, US President Donald Trump signed an executive order, which the White House shared on X, claiming that the rise of tariffs on steel and aluminium would 'provide greater support' to US industries, and would 'eliminate the national security threat' posed by imported steel and aluminium. Last March, Trump had re-established tariffs on steel and aluminium, which were initially imposed in 2018 and 2020 under his first mandate. The steel sector has already been struggling with Chinese overcapacities flooding the EU market, but since the US imposed tariffs across the globe the bloc is facing overcapacities from multiple countries. Import penetration in the EU is up to 30% in 2025 in a context of depressed demand, Eggert claimed. In Brussels, the pressure has intensified following Trump's increased tariffs at a time when the EU seeks to negotiate a resolution to its trade dispute with the US. 'The 50% tariffs have clearly not helped the negotiations at all,' said one EU diplomat. On Wednesday, EU Trade Commissioner Maroš Šefčovič acknowledged in an X post that the two sides 'are advancing in the right direction at pace', and are 'staying in close contact to maintain the momentum', following his meeting with his US counterpart, Jamieson Greer in Paris on the sidelines of an OECD trade ministerial. But quizzed by journalists later in the day, Šefčovič said he 'strongly' regretted Trump's latest 50% tariffs on steel and aluminium, adding: 'It doesn't help, especially as we are making progress.' A group of EU high-level experts, including Tomás Baert, trade advisor to European Commission President Ursula von der Leyen, has been in Washington since Monday to negotiate the technical details that could help the EU and the US break the deadlock. Besides the 50% tariffs on steel and aluminium, the EU is also facing a 25% tariff on cars and a 10% levy on all other imports. The US also has launched several investigations into pharma, semiconductors and aircrafts that could lead to further tariffs. Trump has further threatened to impose a 50% tariff on all EU goods as of 9 July if the negotiations fail to meet his expectations. The US and the EU exchanged proposals two weeks ago, but both sides have dismissed the other's offers. The EU offered a deal of zero-for-zero tariffs on all industrial goods and purchase of strategic products such as US energy, tech and agri-products, whereas the US expected the EU to review some of its regulations. The infant mortality rate has increased in at least eight EU countries in 2024, according to the latest figures from the countries' national statistics offices. The infant mortality rate refers to the number of deaths of children under one year of age per 1,000 live births. In 2024, both France and Romania reported infant mortality rates surpassing the EU average of 3.3 deaths per 1,000 live births from 2023. Romania experienced a significant rise in its rate, jumping from 2.1 deaths per 1,000 live births in 2023 to 6.4 in 2024. This is followed by France, which saw the rate double from 2 deaths per 1,000 live births in 2023 to 4.1 deaths per 1,000 live births. This means that one child out of 250 dies before the age of one in France, according to the French Institute of Statistics and Economic Studies (INSEE). Since 2015, France's infant mortality rate has consistently been higher than the EU average. Boys are 1.2 times more likely than girls to die before the age of one and twins or triplets are five times more at risk than any other children. Between 2023 and 2024, Portugal experienced a 20% increase in infant mortality rates, a trend that deviates from the country's overall mortality rate. The causes behind this trend are not clear, but several factors may contribute, including the increasing age of mothers, an increase in multiple pregnancies and geographic inequality of access to maternal health care, according to health experts. On the other hand, Latvia and Sweden have the lowest infant mortality rate in the EU. Currently, Lithuania, Ireland, Luxembourg, Denmark and Slovenia only have estimated numbers. 2024 was a year marked by health staff shortages and the closure of some maternity hospitals in countries like Portugal, Germany and France. During the summer of 2024, 10 Portuguese maternity wards were closed or with restrictions. This followed the government's presentation of a Health Emergency and Transformation Plan to be implemented in three months to guarantee general access to healthcare. In the past decade in France, 15% of small maternity units have closed. Over the past two decades, the number of doctors and nurses per capita has increased substantially in most EU countries. However, the workforce is ageing and interest in health careers among young people is declining due to low salaries and poor working conditions.
