U.S. tariffs on imported steel products are imposing threats on German steel producers' exports to the American market, with the EU claiming retaliatory tariffs on 26 billion euros (about 28 billion U.S. dollars) worth of U.S. goods in response.
The European Commission announced the potential countermeasures on Wednesday, in response to the expiration of prior exemptions and the reinstatement of 25 percent tariffs on all steel and aluminum imports by the U.S.
According to the European Union Industry Association, around 4 million tons of EU steel were exported to the U.S. in 2023, with a quarter of that originating from Germany. The Benteler electric steel mill in Lingen, northwest Germany, which produces raw pieces of steel from scrap metal, is among the companies feeling the impact.
"We produce approximately 650,000 tons of steel each year. That means we make over 2,000 tons each day," said Andreas Stadtherr, Lingen Plant Manager, Benteler Steel.
These steel billets are then transported by train to other Benteler facilities in Germany, where they are transformed into hot-rolled and cold-drawn tubes for various industries across Europe, including automotive, energy, and construction. Some products are even sent to the company's tube plant in Louisiana.
"Tariffs will of course affect the products that we supply from Europe, i.e., the steel that we supply from Lingen to the U.S.," said Thomas Michels, CEO of Benteler Steel.
Even before the tariffs were enacted, the German steel industry was grappling with rising energy costs, intensifying competition, and expenses related to decarbonization, all of which were squeezing profit margins. U.S. tariffs risk distorting the market further, as steel that would have been destined for the American market is now being diverted to other regions, including Europe.
"Many suppliers who currently supply the USA from Asia, from China will look for new markets and will try to supply more products to Europe. I think we should enter into talks with the US to find a good solution for the EU, Germany and the US. The EU must take action and set up certain border zones to prevent dump steel from coming into the EU," said Michels.
While the European Commission's announcement of counter-tariffs on U.S. goods indicates a firm stance, it also expressed a willingness to negotiate. This position resonates with many German steelmakers, who argue that the tariffs are counterproductive even for the U.S. steel industry.
"If you consider that the U.S. imports up to 21 million tons of steel, it won't be possible to produce these 21 million tons in the U.S. because the capacity simply doesn't exist," said Michels.
Some analysts predict that rather than protecting the U.S. steel industry, these tariffs may ultimately increase costs for American consumers.
US steel tariffs threaten German steel exports, spark EU retaliation
The recent budget cut to the U.S. Agency for Global Media (USAGM), which funds the Voice of America (VOA), has shed light on its role as a political tool for ideological warfare, as experts noted people's dawning recognition of such propaganda machines aimed at undermining political and social orders of other countries.
Trump's executive order, issued last Friday, designated USAGM as part of "unnecessary" federal bureaucracy. The agency, which oversees VOA, employs around 3,500 staff members and had a budget of 886 million U.S. dollars for 2024, according to its latest report to Congress.
Founded in 1942, VOA has long served as a propaganda tool for the U.S. government, advancing ideological objectives. Funding for VOA and similar institutions has continued uninterrupted for over 80 years, regardless of which political party holds power.
Experts argue that VOA is not a genuine media organization. Many of its programs are not broadcast within the United States, but instead target specific countries abroad, functioning primarily as a propaganda outlet designed to influence foreign audiences.
"While it may appear to be a so-called media organization, in reality, its actions have never constituted true journalism. Therefore, terms like openness, transparency, or credibility cannot be used to assess VOA. From its inception, it has been a political tool for the United States to implement its foreign strategies and policies, essentially functioning as a strategic instrument," said Diao Daming, deputy director of the Center for American Studies at Renmin University.
Alongside VOA, "Radio Free Asia" and "Radio Free Europe" also serve U.S. ideological needs, often targeting and attacking other countries. Many nations have recognized the damage caused by these outlets, regarding them as "unwelcome organizations".
"These so-called institutions have been recognized for causing significant disruptions to political, social, and even economic orders in other countries, often leading to events like 'color revolutions' and similar upheavals. As a result, most countries have adopted a clear stance of resistance, fully understanding the true nature of these so-called 'media' as tools of hegemonic influence," Diao added.
Coincidentally, last week, the Canberra-based Australian Strategic Policy Institute (ASPI), a think tank critical of China, announced halting its China-related research projects after the U.S. government froze its foreign funding.
Whether forced to shut down or exposed for their practices, these events highlight the vulnerability of these propaganda networks. Without funding, their operations struggle to continue. However, experts suggest that the United States is unlikely to halt its ideological campaigns and may rebrand these entities in new forms.
"I believe these institutions and individuals will likely use this opportunity to transform, employing more covert and subtle methods to carry out propaganda abroad, rather than simply halting or cutting off funding," said Yang Yujun, dean of the Academy of Media and Public Affairs at Communication University of China.
US budget cuts unveil Voice of America's role in ideological warfare: experts
