Steel tariffs endanger numerous employment opportunities - Potential job losses loom as steel deals face uncertainty, according to Rehlinger's statement?
The steel industry in Saarland, employing around 12,000 people directly and 20,000 indirectly, is under pressure due to the trade deal between the USA and the EU, according to the Industry and Commerce Chamber in Saarland.
In a joint online survey with the University of Applied Sciences for Technology and Economics of the Saarland (HTW), the IHK Saarland gathered insights from 63 Saarland companies, representing around 15 percent of the socially insured employed in the federal state. The survey asked about the possible consequences of various tariff rates on vehicles, steel, and aluminum.
Frank Thomé, the main executive of IHK Saarland, considers the tariff rate of 15 percent a heavy blow to the export-oriented economy. The import of steel and aluminum from the EU to the USA is still subject to tariffs of 50 percent.
Minister President Anke Rehlinger of Saarland has called for an additional steel agreement to secure quotas between both partners and protect the markets. Rehlinger criticizes that the EU Commission President seems to have forgotten the steel industry and calls for immediate national action to protect it.
Rehlinger believes a market protection umbrella would be beneficial for both the European and American markets. She also advocates for competitive energy prices and a reliable plan for hydrogen infrastructure to safeguard the German steel industry.
While the survey was conducted before the agreement reached between the USA and the EU, it predicts that under a tariff rate of 15 percent on most goods from the EU, the medium-term risk for jobs in Saarland could increase to around 17,000. In a scenario with a 10 percent general tariff rate, 2,200 jobs could be lost directly, and up to 16,000 jobs could be at risk when considering indirect effects.
The current agreement disadvantages the steel industry, according to Rehlinger. She has called for an immediate national steel summit to address the crisis comprehensively.
Various measures are being proposed at the federal and state levels to mitigate such impacts, including calls for a dedicated steel summit, advocacy for industrial electricity price reforms, support for transformation towards climate-neutral steel production, and political prioritization of the steel industry. However, specific measures or estimated job losses linked to the tariff deal between the USA and EU for Saarland remain unclear.
[1] Source: Various news articles and reports from German media outlets.
- The steel industry in EC countries, such as Saarland, is facing challenges due to tariff rates on exports to the USA, as highlighted by the Industry and Commerce Chamber in Saarland.
- The general news about the trade deal between the USA and the EU points towards a potential increase in employment policy concerns, as around 17,000 jobs in Saarland may be at risk under a tariff rate of 15 percent on most goods from the EU.
- Additionally, in a scenario with a 10 percent general tariff rate, jobs could be lost directly, and a significant indirect impact on up to 16,000 jobs could be expected in Saarland, requiring immediate action from both national and state levels in terms of employment policy and protection of critical industries like the steel industry.
