German Chancellor calls agreement painful for European industry

The European Union will negotiate with the United States on steel, focusing on quotas under which exports can be made without excessive tariffs. This was announced by German Chancellor Friedrich Merz during a visit to Saarland at the end of last week.

According to Merz, the task now is to work out the “fine print.”

“This will particularly apply to quotas, under which we will then be able to export without burdening ourselves with excessive tariffs,” the German chancellor said.

He called the agreement painful for the entire European industry, but noted that the EU does not have the opportunity to start a full-scale trade dispute.

Merz also noted that the government will do everything to preserve the steel sector and steel production in Germany.

“Germany will continue to need a steel industry in the future, a modern steel industry, including a ‘green’ one,” he said.

Friedrich Merz emphasized that preserving steel production in Germany is in the country’s strategic interest. He is currently in talks with factories and workers, and proposals will be finalized in the coming weeks, as the state needs a reliable steel strategy.

In July, the EU and the US signed a trade agreement – tariffs on imports to the US of most European goods were agreed at 15%. However, negotiations are continuing

on certain sectors, including steel and aluminum, which are subject to 50% tariffs.

EU steelmakers criticized the trade agreement with the United States because of the retention of 50% tariffs on steel. The industry demands fair trading conditions and protection from excessive imports.

In particular, WV Stahl CEO Kerstin Maria Rippel emphasizes that the situation remains catastrophic for the European steel industry. She stressed the need to create a steel alliance between the EU and the US to jointly combat global overcapacity and called on the European Commission to implement the provisions of the action plan on steel and metals.