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
Concerns are rising in Florida that the current trade tensions and wider political disputes between the U.S. and Canada could hurt the state's tourism industry by potentially reducing the number of Canadian visitors flocking to the state.
While U.S. President Donald Trump has delayed his proposed 25 percent tariffs on most products from Canada for at least another month, levies on aluminum and steel took effect on Wednesday, and Trump has threatened more tariffs on Canadian lumber and dairy products.
In response, Canada has imposed retaliatory tariffs on many U.S. imports and a hefty surcharge on all electricity exports to three northern U.S. states.
Meanwhile, Canada's new Prime Minister Mark Carney, who officially took office on Friday after succeeding Justin Trudeau, said in his election victory speech that Trump is "attacking Canadian workers, families and businesses" and slammed the U.S. president for his "unjustified tariffs" on Canada and repeated remarks about annexing the country.
This escalating trade war could cast a shadow over the tourism industry, given the important role Canadian visitors play in the U.S. travel sector. According to the U.S. Travel Association, 20.4 million Canadians visited the U.S. in 2024, generating 20.5 billion U.S. dollars in spending and supporting 140,000 jobs.
The impact of the tariffs is expected to be felt in the state of Florida, where Canadian tourists make up a significant portion of visitors. Many of them are known as "snowbirds" for choosing to spend the long Canadian winters in the much warmer climate of Florida.
The state's official tourism marketing organization recorded 3.2 million Canadian visitors last year, marking a 19.8 percent increase from 2022 and the highest number by far from any country.
William Buzzi, a Florida store manager, proudly emphasized that the scenic beauty of Hollywood Beach, which runs between Ft. Lauderdale and Miami, attracts many tourists who generate substantial spending.
However, he expressed frustration over the ongoing trade tensions and the Trump administration's handling of the situation.
"We get a huge Canadian crowd here in Hollywood Beach, and they love it here, as you can see. How can you not fall in love with this. And they love Hollywood, and for years and years they come. They come down here and they spend a lot of money with us. So we are concerned. But what can we do? I mean, it's the government," he said.
While many Canadian tourists insist they will keep on coming, some acknowledge that the wider economic impact brought by the tariffs, which could hit the Canadian dollar hard, may deter travelers from heading to Florida.
"We like the weather here. We don't like the snow. So we will continue to come for sure. I think the main impact would be if the Canadian dollar is dropping again, this will be the main reason why the 'snowbirds' won't be coming to Florida because of the Canadian dollar. It's pretty bad now, and I think that it's one of the reasons why some people are not coming," said a tourist named Rejeen Gourde.
Denis Forget, another Canadian tourist, stated that some might change their travel plans due to currency fluctuations and other factors, but added he would still continue visiting.
"I won't stop. I know that a lot of people will probably change their plan for vacation. Currency is one of the things, right, the dollars. And some, as a protestation, will stay in Canada, for example, this summer. But I won't say it's for everybody. But it's not going to be me," he said.
Fears rise as tariffs may drive Canadian 'snowbird' tourists away from Florida
