Socialist Party leader advocates for steel-focused summit meetings

In an effort to support the struggling German steel industry, SPD leader Lars Klingbeil has initiated a call for a summit to discuss potential solutions with CEOs and works councils. The steel industry is currently facing a triple threat of weak domestic demand, high energy prices, and U.S. tariffs on imports.

The U.S. President, Donald Trump, increased tariffs on steel and aluminum imports from 25% to 50% at the beginning of June. This move has affected German steel companies, as the U.S. is a significant market for high-quality German steel, particularly in aircraft production.

Klingbeil proposes lower tariffs or high quotas as a solution in the trade dispute with the U.S. He emphasises the need for a reasonable solution to be found, as continued delays could endanger thousands of jobs in the steel industry.

Saxony's economics minister, Dirk Panter, also supports the idea of a steel summit, stating that the steel industry is urgently in need of political support. Early in July, the steel-producing federal states of Bremen, Lower Saxony, North Rhine-Westphalia, and Saarland called for a steel summit in a motion to the Bundesrat. Bremen's head of government, Andreas Bovenschulte (SPD), is urging for the steel summit to be convened as soon as possible.

The German steel industry has seen a significant drop in production in recent times, with a decrease of almost 12% in the first half of the year to 17.1 million tons. This drop is further compounded by the fact that hundreds of additional products, including motorcycles and mopeds, door and window frames, sports equipment, cranes, and railway wagons, are now subject to U.S. tariffs on steel and aluminum.

Trump has threatened even higher rates for steel imports to encourage companies to produce in the United States, but these tariffs are not part of the agreement between the U.S. and the European Union. Klingbeil highlights that the U.S. relies on German high-quality steel, particularly in aircraft production, and a reasonable solution must be found in the trade dispute regarding steel.

The steel summit aims to provide a platform for discussions on how to lower energy prices for the steel industry and explore potential solutions to the challenges faced by the sector. The summit is expected to bring together key stakeholders, including company leaders and worker representatives, to collaboratively address the issues and find ways to support the German steel industry.