Trade policy: Can one overdo it with protection from China? How new steel tariffs are splitting the industry
Chancellor Merz has made a U-turn in Germany's China policy. However, an important product from Germany shows just how complicated the new toughness is: electric steel from Gelsenkirchen.
Thyssenkrupp Steel Europe, a subsidiary of Thyssenkrupp, produces special steel, known as "kornorientiertes Elektroband", in Gelsenkirchen, Germany, and in Isbergue, France. This type of steel is crucial for the production of transformers and plays a key role in the energy transition. However, European producers, including Thyssenkrupp, are facing challenges due to cheap imports from China, which have tripled since 2022.
The EU Commission has proposed protective tariffs on imported steel to counter this, but industry experts warn that this could have negative side effects, such as increased costs for transformer manufacturers. The issue is complex, with different industry groups holding varying views, and the EU must balance the need to protect domestic producers with the need to ensure a stable supply of essential materials.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
