Industry voices are clashing as Germany’s automotive and steel sectors have separately appealed to Chancellor Friedrich Merz regarding trade policy surrounding steel imports, according to reporting by Politico. The diverging positions highlight a complex situation as the EU Commission’s existing “Steel Safeguard” measures are set to expire mid-next year.
The German Steel Association (WV Stahl) has urged a significant reduction in import quotas and the imposition of 50% protective tariffs. The association argues that the existing safeguards are crucial to protect the European steel industry from what it deems unfair competition, particularly due to competitively priced steel imports from Asia.
Conversely, the German Automotive Industry Association (VDA) has expressed deep reservations about prolonging these protections or introducing new trade barriers. The VDA, in a letter signed by President Hildegard Müller, has signaled strong opposition to any measures that could excessively extend current safeguards. The association contends that existing measures have already had a detrimental inflationary impact on steel prices, negatively affecting the automotive industry.
The Association of German Mechanical Engineering (VDMA) has also voiced concerns. Responding to Politico’s inquiries, the VDMA expressed skepticism towards proposed trade measures intended to replace the existing safeguards, stating they would likely distort competition and negatively impact the competitiveness of German companies. The debate underscores the potential for increased costs and disruptions within the German manufacturing landscape as policymakers consider the future of steel trade policy.
