Socialist Party Leader Proposes Steel Aid Summits
Germany's steel industry is facing a tough time, and several federal states are urging for a steel summit to discuss potential support. The call for a summit has been renewed by Bremen's head of government, Andreas Bovenschulte, and echoed by Saxony's Minister of Economics, Dirk Panter.
The steel industry's struggle is due to weak domestic demand, high energy prices, and US tariffs. In early June, US President Donald Trump increased tariffs on steel and aluminum imports to 50 percent, from previously 25 percent. Hundreds of additional products, including motorcycles and mopeds, door and window frames, sports equipment, crane vehicles, and railway wagons, have been affected by these tariffs.
The SPD leader, Lars Klingbeil, is calling for a summit to strengthen Germany's steel sector. Klingbeil notes that the US relies on Germany's high-quality steel, particularly in aircraft construction. He suggests that a reasonable solution must be found in the trade dispute with the US regarding steel, perhaps through low tariffs or high quotas.
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. Bovenschulte warns that hesitation could endanger thousands of jobs and the future of Germany's industrial locations.
The concrete proposals for the planned sector conference to support the German steel sector include measures to improve competitiveness, reduce energy costs, and enhance innovation. The federal states interested in a solution for the US tariffs are North Rhine-Westphalia, Saarland, and Brandenburg.
Finance Minister and Vice-Chancellor Klingbeil wants a steel summit to discuss ways to strengthen the steel industry, such as through lower energy prices. Chancellor Friedrich Merz (CDU) is being urged to convene the steel summit in response to the "tariff disaster" for the German steel industry.
The SPD politician Panter suggests that a sector summit would be the right signal to secure the future viability of steel production in Germany. He emphasizes that the steel industry is a heart of industrial value creation and a guarantee of thousands of good jobs.
It's important to note that these tariffs are not part of the agreement between the US and the European Union. The German Steel Association did not provide information on the impact of US tariffs on steel production in the specific paragraph.
Bovenschulte has emphasized the urgency of the steel summit, stating that it must be convened as soon as possible to discuss ways to strengthen the steel industry. The call for a steel summit in Germany continues to gain momentum as the industry faces challenging times.
