Shock for the steel industry: Trump doubles tariffs to 50%!

Shock for the steel industry: Trump doubles tariffs to 50%!

US President Donald Trump announced on June 2, 2025 that he would increase import tariffs on steel and aluminum from 25 to 50 percent from June 4. This drastic measure, which was communicated via Trump's online service Truth Social, is aimed at further securing the American steel industry. During an appearance in front of US Steel workers in Pennsylvania, Trump emphasized that the company would remain under US control and would no longer exist without the previous tariff increases. However, the tariff increase has met with considerable criticism, particularly from the European steel industry.

The Lower Saxony steel group Salzgitter reacted sharply to the announced tariff increase and is calling for more pressure from the EU Commission in the negotiations with the USA. Manufacturers fear that the new tariff rates could jeopardize their stable business flow. The EU Commission itself has indicated that it could introduce counter tariffs if negotiations with the USA fail. This represents additional uncertainty for the industry.

Criticism from the industry

The steel industry is sounding the alarm. In Germany and other European countries, companies fear significant restrictions in their business processes. Salzgitter, one of the largest steel producers in Germany, has sharply criticized the increase in protective tariffs and sees an urgent need for action by the EU. The announcement comes at a time when Trump had already threatened 50 percent tariffs on EU goods last week, but these were initially postponed.

The discussion about the tariff increases is complicated by the fact that the US Trade Court has lifted most of Trump's tariff surcharges under a 1977 emergency law. However, the government appealed this ruling and the appeal court upheld the appeal. Thus, the tariffs remain in effect during the appeal process.

Impact on the partnership between US Steel and Nippon Steel

In addition to the tariff increase, the planned cooperation between US Steel and Nippon Steel continues to be monitored critically. Trump had positioned himself against Nippon Steel's takeover of US Steel during the election campaign, but although details of the agreement are still unclear, this partnership is now being pursued. Trump praised the cooperation, but the steel union USW expressed concerns because it was not involved in the negotiations.

Nippon Steel plans to invest in new plants and modernize mines, while US Steel's headquarters will remain in Pittsburgh. Trump also assured that there would be no layoffs or outsourcing of jobs, although this could be viewed with skepticism given current developments in the industry.

The coming weeks will be crucial to see how the situation develops and whether the EU and the steel industry will be able to respond to the challenges posed by the new tariffs.