Latest news with #EuropeanIndustry
Reuters
3 days ago
- Business
- Reuters
European industry hit hard by Trump tariffs, Salzgitter CEO warns
DUESSELDORF/FRANKFURT, June 2 (Reuters) - Salzgitter, Germany's second-biggest steelmaker, on Monday warned that Washington's tariff policy was dealing a severe blow to European industry, after the U.S. administration unveiled plans to double steel import levies to 50%. "The erratic tariff policy of the USA is hitting Europe's economy hard - especially Germany," Salzgitter ( opens new tab CEO Gunnar Groebler said in a written statement. Shares in Salzgitter fell along with larger European peers Thyssenkrupp ( opens new tab and ArcelorMittal , all down between 0.5 and 2.1%. Groebler said that apart from the direct tariffs on exports to the United States, there was also increased import pressure on the EU market as a result of rising volumes of cheaper Asian steel in Europe. According to Germany's steel association, the United States accounted for around a fifth, or 4 million tonnes, of European steel exports outside of the EU, making it the most important export market. "An increase in steel import duties in the USA to 50% should prompt the EU Commission to accelerate its efforts to implement the measures under the Steel and Metals Action Plan," Groebler said.
Yahoo
3 days ago
- Business
- Yahoo
European industry hit hard by Trump tariffs, Salzgitter CEO warns
DUESSELDORF/FRANKFURT (Reuters) -Salzgitter, Germany's second-biggest steelmaker, on Monday warned that Washington's tariff policy was dealing a severe blow to European industry, after the U.S. administration unveiled plans to double steel import levies to 50%. "The erratic tariff policy of the USA is hitting Europe's economy hard - especially Germany," Salzgitter CEO Gunnar Groebler said in a written statement. Shares in Salzgitter fell along with larger European peers Thyssenkrupp and ArcelorMittal, all down between 0.5 and 2.1%. Groebler said that apart from the direct tariffs on exports to the United States, there was also increased import pressure on the EU market as a result of rising volumes of cheaper Asian steel in Europe. According to Germany's steel association, the United States accounted for around a fifth, or 4 million tonnes, of European steel exports outside of the EU, making it the most important export market. "An increase in steel import duties in the USA to 50% should prompt the EU Commission to accelerate its efforts to implement the measures under the Steel and Metals Action Plan," Groebler said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-02-2025
- Business
- Yahoo
Europe's Defence Plans Clash With Energy Transition Strategy
Europe's security and defense are in a precarious state. The 'Nations First' approach of the new Trump administration is putting the continent's military and security structure at risk. Calls from Brussels (EU and NATO) for increased defense spending across Europe, including the UK, have been met with positive reactions. European nations are now discussing potential investments of $200-300 billion in military hardware and force expansion over the coming years. However, a Black Swan looms on the horizon—one that could undermine all these efforts. While leading European nations such as Poland, France, Germany, and the UK plan to raise defense budgets to 3-5% of GDP—suggesting money is not the issue—market forces are failing to meet demand. NATO Secretary-General Mark Rutte's call for a war economy, initially met with skepticism, now seems essential, especially as Washington considers reducing its military presence in Europe. The prospect of Europe facing Russia and other adversaries alone, whether in Ukraine or elsewhere, is becoming increasingly real. Yet, politicians remain hesitant to confront the underlying challenges. Allocating money for military expansion is easy in theory, but the reality is far more complex. As the World Economic Forum recently noted, European economies are fundamentally designed to provide security through social welfare, not military readiness. Transforming them to confront an existential military crisis is an unprecedented challenge. European nations have also become highly dependent on imported military equipment, primarily from the U.S. To change this dynamic, a complete overhaul of the European defense industry and manufacturing sector is needed—alongside a reassessment of Europe's energy security. For the foreseeable future, defense operations remain heavily reliant on hydrocarbons. Tanks, planes, and ships require vast quantities of oil-based fuels to function. A report by the Dutch Center for International Energy Policy (CIEP), "A Game of Jenga with European Industry" (link), has already warned of the fragile state of Europe's refinery sector and manufacturing base—a crucial factor often overlooked in security debates. A more pressing issue is the impact of Europe's aggressive energy transition policies on its security and industrial capabilities. The EU Green Deal, the Draghi Report, and the new European Omnibus all push for rapid emissions reductions and the electrification of industry. While these are noble environmental goals, they are currently incompatible with the urgent security needs of Europe. Brussels' relentless push for strict Paris Agreement implementation risks not only crippling key industrial sectors—such as steel, aluminum, and shipbuilding—but also undermining Europe's defense readiness. Without domestic production of raw materials, components, and hardware, defense procurement becomes an illusion. Europe not only needs to preserve its manufacturing base but expand it to meet the vast defense investments planned for the coming years. Companies like Krups, Tata Steel, Volkswagen, Damen Shipyards, and VDL are essential to bolstering Europe's defense capabilities. Without support, Europe will remain dependent on the U.S., South Korea, Israel, and Turkey to supply its military needs—leaving it vulnerable to geopolitical shifts. To put this in perspective, total European defense industry revenues have hovered around $200 billion (excluding Turkey) in recent years. That figure will need to grow substantially to absorb the influx of new defense spending. However, without reliable hydrocarbon-based energy and materials, Europe's armies and navies will be left stranded. Refineries and chemical plants must be upgraded, not dismantled. The world has changed. The Big Bad Wolf is no longer global warming but the military threat at Europe's borders. If European leaders do not reassess their low-carbon agenda, they risk jeopardizing the continent's security. Some of the most extreme green policies may need to be put on hold—because if Europe fails to act, it may soon find itself heating up by other means. By Cyril Widdershoven for More Top Reads From this article on
