Salzgitter harshly criticizes new US tariffs

Gunnar Groebler, CEO of the company, stated that Washington's decision has a serious negative impact on European industry, especially in Germany.

According to the German Steel Association, about one-fifth of European steel exports outside the European Union, or 4 million tons a year, go to the United States. This makes the US one of the largest export markets for the European steel industry.

“The US's unbalanced tariff policy is hitting the European economy hard, especially Germany,” Groebler noted in a statement. Groebler also emphasized that not only the tariffs imposed on the US, but also the increased import pressure on the European domestic market due to cheap steel from Asia is putting serious pressure on the sector.

The reaction of the markets was mixed. ArcelorMittal and Thyssenkrupp shares declined by 0.2% and 1.2%, respectively, while Salzgitter shares were stable. Only 4.5% of Salzgitter's sales are destined for the US market and half of that is from its non-steel technology division.

Salzgitter's warning once again highlights the vulnerability of Europe's steel industry to global trade policies.