Salzgitter Warns US Tariffs Threaten German and EU Steel Industry

Salzgitter AG, Germany’s second-largest steelmaker, has issued a warning over the U.S.’s decision to double steel import tariffs to 50%, saying the move poses a major threat to European industry, especially Germany. The United States is the largest export market for European steel outside the EU, accounting for 4 million tonnes or roughly 20% of exports, according to Germany’s steel association.

Salzgitter CEO Gunnar Groebler criticized the “erratic tariff policy” of the U.S., stating it is putting additional pressure on Germany’s economy. He added that beyond direct tariffs, European steelmakers are facing rising import pressure as cheaper Asian steel floods the market, further destabilizing the sector.

European steelmakers have long struggled with competition from low-cost Asian producers, and fears are growing that the new U.S. tariffs will worsen the situation. As steel shipments to the U.S. become less viable, Asian exporters may redirect volumes to Europe, driving prices down and hurting domestic producers already burdened by high energy costs.

In response, the EU implemented stricter steel import quotas starting April 1 under its European Steel and Metals Action Plan, cutting inflows by 15% to protect the local market.

Despite only 4.5% of Salzgitter’s sales coming from the U.S.—half of which is from its non-steel technology arm—the broader impact of trade tensions remains significant. Peer companies Thyssenkrupp and ArcelorMittal also saw share prices dip between 0.6% and 1.8% on the news. Thyssenkrupp, which exports less than 5% of its steel to the U.S., declined to comment.

Groebler urged the EU Commission to accelerate the rollout of its action plan to shield the region’s steel sector from worsening global trade challenges.