The New US Tariffs: A Rough Ride for German Steel and Aluminum Exports
Imports of iron and steel from the USA have decreased significantly. - Decline in Exported Iron and Steel to the U.S.A.
Looking at the current trade tensions, U.S. tariffs on steel, iron, and aluminum have taken a toll on German exports. From the opening quarter of 2022 to April, German deliveries of these metals to the United States dropped by 0.4% to 1.3 billion euros, compared to the previous year. Aluminum exports to the U.S., meanwhile, slipped by 1.8% to 218 million euros.
These escalating tariffs came into effect from March 12, 2025, with an additional 25% levy on the import of these materials. The tariffs even rose to 50%, starting June 4, 2025.
The Moderate Aftershock
Despite the setbacks in exports, the decline in iron and steel trade with the U.S. has been comparatively mild. The Federal Statistical Office in Wiesbaden points out that the decrease was far less than the overall decline in German iron and steel exports, with total deliveries dwindling by 4.2% to 20.7 billion euros in the first four months of the year. The U.S. ranked 6th among the major customers for German iron and steel, capturing a share of approximately 6%.
For aluminum, the U.S. ranked 10th among the major customer countries for Germany. During the initial four months, German manufacturers exported more aluminum and products derived from it than the year before—amounting to a total of 6.4 billion euros, signifying an impressive increase of 8% compared to the previous year.
- United States
- Steel
- Aluminum
- Wiesbaden
The Bigger Picture
The tariff rates on iron, steel, and aluminum imports to the United States have evolved significantly in recent years, particularly in 2025. The initial tariffs, at 25% for steel and 10% for aluminum, underwent expansion early in 2025, with aluminum tariffs touching 25%. By June 4, 2025, the tariff on steel and aluminum imports was doubled to 50%, aiming to shield U.S. steel and aluminum industries from unfair trade practices and excessive global production. These high tariffs are likely to have a considerable impact on German exports, making them less competitive and more costly in the U.S. market.
In summary, since June 2025, German exports of steel, aluminum, and associated products to the U.S. have faced substantially increased tariff barriers, reducing their competitiveness and significance in the U.S. market. While the details may change, the protective environment created by these tariffs is expected to favor domestic production over imports, including from Germany, going forward.
- The community policy should address the significant impact of the increased tariffs on German steel and aluminum exports to the United States, considering their status as important industries within the economy.
- The employment policy in the energy sector must consider the potential job losses in the German steel and aluminum industries due to the increased tariffs in the United States, as the finance industry may not provide sufficient offsetting opportunities.
