Socialist Party leader advocates for meetings aimed at providing steel support
German Steel Industry Faces Challenges, Politicians Call for Sector Summit
The German steel industry is facing tough times, with domestic raw steel production falling by almost 12 percent in the first half of the year and hundreds of additional products subject to steel and aluminum tariffs. This has prompted calls for a sector summit to discuss possible aid for the industry, led by several federal states and SPD leader Lars Klingbeil.
Bremen's mayor, Andreas Bovenschulte, has repeatedly emphasized the urgency for a sector summit, stating that delaying it could endanger thousands of jobs and the future of the German industrial location. Similarly, Klingbeil believes a reasonable solution must be found in the trade dispute with the USA for steel, suggesting low tariffs or high quotas.
Saxony's Economics Minister, Dirk Panter, an SPD politician, has also expressed his concerns, stating that the steel industry is urgently in need of political support. He believes a sector summit could secure the future viability of steel production in Germany. Panter, like Bovenschulte, has described the steel industry as a heart of industrial value creation and a guarantee of thousands of good jobs.
The steel-producing federal states of Bremen, Lower Saxony, North Rhine-Westphalia, and Saarland called for a steel summit in a motion in the Bundesrat at the beginning of July. Finance Minister and Vice-Chancellor Klingbeil wants a steel summit to discuss ways to strengthen the steel industry, such as lower energy prices.
US President Donald Trump increased tariffs on steel and aluminum imports to 50 percent in early June, previously they were 25 percent. Trump had threatened even higher rates for steel imports to encourage companies to produce in the United States. However, these tariffs are not part of the agreement between the USA and the European Union.
Chancellor Friedrich Merz (CDU) is being urged to act swiftly to address the "tariff disaster" for the German steel industry. With the CDU and SPD forming a coalition government in 2025, it is conceivable that this coalition could hold the steel summit to address the sector's challenges.
The future of the German steel industry is being threatened by current challenges, including weak demand, high prices, and trade disputes. It remains to be seen whether a sector summit will be held and what measures will be taken to support the industry.
