Donald Trump Is Damaging the US
Published in Rheinische Post
(Germany) on 4 June 2025
by Birgit Marschall (link to original)
One day before German Chancellor Friedrich Merz meets with U.S. President Donald Trump in Washington, Trump raises U.S. import tariffs on steel and aluminum to 50%. What does this mean for Germany and its chancellor?
Donald Trump's new steel tariffs are not just aimed against Europe, but at the entire world; however, the move is so close to the visit on Thursday that it is an affront to Friedrich Merz. As a trading nation, Germany is particularly affected by tariffs of any kind.
Although Germany exports only a fraction of its steel and aluminum production to America, the U.S. is still the most important export market for steelworks. The second round of effects from Trump's tariff policy is likely to be even worse than the decline in German exports to the U.S.
Manufacturers from around the world, especially from Asia, are likely to react by attempting to redirect large amounts of shipments to Europe. This would place significant pressure on achievable prices for German manufacturers, thus representing additional bad news for an ailing steel industry that is already fighting high energy costs.
Furthermore, the energy-intensive industry must successfully transition toward “green” steel in the coming years — steel manufactured using green hydrogen generated using renewable energy. Merz had questioned the change (for its cost to taxpayers) that had been promoted by the former Federal Minister for Economic Affairs and Climate Action Robert Habeck (Green Party) during the election campaign; he later backpedaled on it. Nevertheless, the impression seemed firm that the leader of the Christian Democratic Union would cut its climate goals should the transformation stutter. It will now be more even more difficult because of Trump's tariffs. The unpredictable man in the White House is also torpedoing international climate policy.
Hope remains that Trump will be impressed with the economic consequences of his tariff policy in the U.S. American consumers will have to pay for the tariffs through higher prices for cars, machinery and kitchen appliances manufactured with more expensive steel and aluminum. U.S. manufacturers will not be able to replace the rising gaps by redirecting steel imports, which will further raise prices in America. And inflationary pressure is already high.
Europeans, who have been negotiating an agreement with U.S. trade representatives since Wednesday, shouldn't be intimidated by Trump's steel tariffs. It's important for them to appear confident and on an equal footing. With 500 million people, the EU is the most important market for the U.S., and Trump's tariffs hurt America more than Europe.
Donald Trump's new steel tariffs are not just aimed against Europe, but at the entire world; however, the move is so close to the visit on Thursday that it is an affront to Friedrich Merz. As a trading nation, Germany is particularly affected by tariffs of any kind.
Although Germany exports only a fraction of its steel and aluminum production to America, the U.S. is still the most important export market for steelworks. The second round of effects from Trump's tariff policy is likely to be even worse than the decline in German exports to the U.S.
Manufacturers from around the world, especially from Asia, are likely to react by attempting to redirect large amounts of shipments to Europe. This would place significant pressure on achievable prices for German manufacturers, thus representing additional bad news for an ailing steel industry that is already fighting high energy costs.
Furthermore, the energy-intensive industry must successfully transition toward “green” steel in the coming years — steel manufactured using green hydrogen generated using renewable energy. Merz had questioned the change (for its cost to taxpayers) that had been promoted by the former Federal Minister for Economic Affairs and Climate Action Robert Habeck (Green Party) during the election campaign; he later backpedaled on it. Nevertheless, the impression seemed firm that the leader of the Christian Democratic Union would cut its climate goals should the transformation stutter. It will now be more even more difficult because of Trump's tariffs. The unpredictable man in the White House is also torpedoing international climate policy.
Hope remains that Trump will be impressed with the economic consequences of his tariff policy in the U.S. American consumers will have to pay for the tariffs through higher prices for cars, machinery and kitchen appliances manufactured with more expensive steel and aluminum. U.S. manufacturers will not be able to replace the rising gaps by redirecting steel imports, which will further raise prices in America. And inflationary pressure is already high.
Europeans, who have been negotiating an agreement with U.S. trade representatives since Wednesday, shouldn't be intimidated by Trump's steel tariffs. It's important for them to appear confident and on an equal footing. With 500 million people, the EU is the most important market for the U.S., and Trump's tariffs hurt America more than Europe.
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