Trump’s Steel Tariffs Threaten to Decimate European Industry, Warns Thyssenkrupp Executive

Europe’s steel industry faces an existential crisis following U.S. President Donald Trump’s decision to double steel and aluminum tariffs from 25% to 50%. Ilse Henne, a board member at German industrial giant Thyssenkrupp, has warned that this move could “wipe out” the European sector, already grappling with soaring energy costs and a surge in cheap Chinese steel imports. 

The U.S. tariffs, effective July 9, 2025, have redirected a significant volume of steel exports to Europe, exacerbating challenges for European producers. In the first quarter of 2025, imports from China increased by 36%, while U.S. exports to Europe surged by over 1,000% for certain products. This influx of low-priced steel threatens to undercut European manufacturers, many of whom are already operating at a loss due to high energy expenses and declining demand.

The European Commission has recognized the severity of the situation, with Trade Commissioner Maroš Šefčovič promising a new framework to address the crisis by summer 2025. However, industry leaders argue that the current safeguard system, which imposes tariffs above quota thresholds, is insufficient and set to be phased out by 2026. They advocate for more robust protective measures, including stricter import quotas and tariffs on countries like Russia, which remain exempt from previous sanctions. 

Beyond economic implications, the crisis has national security dimensions. Steel is a critical component in defense manufacturing, and reliance on foreign sources could jeopardize Europe’s military readiness. Henne emphasized that the collapse of the steel industry would have severe repercussions across the value chain, potentially undermining Europe’s manufacturing and military security. 

In the UK, the situation is equally precarious. British Steel, owned by China’s Jingye Group, faces uncertainty due to a £1 billion compensation claim against the UK government. The dispute centers on allegations of interference by Chinese state actors, leading to the stripping of operational control from Jingye. Without a resolution, British Steel’s 50,000-tonne annual exports to the U.S. could be subjected to the new 50% tariffs, further destabilizing the company’s position. 

As Europe grapples with these challenges, industry leaders and policymakers are urging swift and decisive action to protect the steel sector. Without comprehensive measures, the continent risks losing a vital industry that underpins both its economy and security.