Germany's Steel Sector Under Threat

In a bold statement during his visit to Saarland, German Chancellor Friedrich Merz committed to taking all necessary measures to safeguard the nation's steel industry. Describing it as a sector of "strategic interest", Merz highlighted the critical role of steel in Germany's economy amidst escalating trade disputes with the United States.

EU's Delicate Balancing Act

Merz emphasized the importance of meticulously reviewing the "fine print" of the recent trade agreement with the US, particularly concerning export quotas that could potentially lower tariff rates. He lamented the agreement as "painful" for Europe but cautioned against the dire consequences of a full-blown trade war, which he argued would disproportionately affect Europeans.

Ongoing Tariff Tensions

Despite the July trade agreement between the European Union and the US, steel exports continue to face steep tariffs of up to 50%, while most other goods are subject to a 15% duty. This disparity underscores the ongoing challenges in achieving a fair and balanced trade relationship.