In Germany, the effects of Trump’s previous tariffs were particularly noticeable in the automotive industry, because the groups often produce in the USA and are heavily dependent on steel imports. German automobile manufacturers such as Volkswagen and BMW were subsequently exposed to higher production costs. The problem is always: either the companies accept losses or losses in profits – or they pass on the higher prices to consumers, which can ultimately lead to the same consequence. One thing is clear: “Made in Germany” is in danger in 2025 as long as not.
But the threatened tariffs are also dangerous for the US economy. The long -term effects of steel import restrictions are well documented. As early as 1985, a comprehensive report by the US International Trade Commission (UsITC) showed that American steel -consuming industries – i.e. construction, mechanical engineering and automotive production – could have significant losses due to higher material costs.
The United States’ trade deficit in steel products has been in existence for a long time. The political efforts to reduce the dependence on imports are great, but this is a lengthy process. Between 2015 and 2023, US imports decreased by 27.8 percent. Especially under the previous US President Joe Biden there was another significant decline, without any global punitive tariffs. In 2023, the US trade deficit was 17.4 million tons at Stahl, which corresponds to a decline of 15.0 percent compared to 20.4 million tons in 2022. But the US economy is still dependent on imports and is therefore struck accordingly if they are now more expensive.
Trump’s approach, which he has repeatedly emphasized in the presidential election campaign: he wants to boost domestic steel production with all violence. That is why he also vehemently spoke out against a takeover of US production facilities by the Japanese company Nippon Steel. It is unclear whether the president achieves his goal by preventing investments.
The reactions to Trump’s further customs threats should also be violent beyond Europe. China, also a stahlexporter, had already imposed a 15 percent transfer to US energy imports and a 10 percent transfer to American oil and agricultural products as a retaliation for the tariffs already imposed by Trump. Beijing should continue to escalate in the next step.
