US Aluminum Tariffs Spark Concerns for German and European Markets
Aluminium Deutschland has raised alarm over the potential consequences of the United States' recent 25% tariff on aluminum imports, which notably excludes aluminum scrap. On 12th March, the Trump-Vance administration enforced 25% tariffs on imports of steel, aluminium, and products containing these metals.
The primary concern is that US-based companies will continue to purchase aluminum scrap at record prices, potentially leading to shortages and sell-offs in Germany and across Europe. Rob van Gils, president of Aluminium Deutschland, emphasizes the urgency of the situation, calling for swift action from the German government and the European Union to prevent the uncontrolled outflow of scrap aluminum.
The German government must advocate export tariffs on aluminium scrap in Brussels in order to stop the uncontrolled outflow and ensure fair competitive conditions for German recycling companies.
Van Gils warns that without immediate intervention, the scrap shortage could worsen dramatically, jeopardizing the expansion of the circular economy and undermining Europe's decarbonization goals and raw material security. This comes at a particularly challenging time for the German aluminum industry, which has seen production volumes decline for three consecutive years.
The impact of the US tariffs extends beyond the aluminum sector. SpiritEUROPE has expressed concern that spirits drinks have become collateral damage in unrelated trade disputes between the EU and US. Similarly, Cepi, representing the paper industry, has urged the European Commission to continue negotiations with the US while considering potential tariffs on pulp, paper, and board imports.
In response to the US measures, the European Union has announced a two-phase countermeasure plan. The first phase involves reimposing previously suspended tariffs from April 1, 2025, while the second phase will introduce a new package of tariffs targeting approximately €18 billion worth of US goods by mid-April.
As tensions escalate, industry leaders like Smurfit Westrock CEO Tony Smurfit have criticized the tariffs as "economic suicide for America," highlighting the potential negative impacts on cross-border trade and business operations. The situation underscores the complex challenges facing global trade relations and the urgent need for diplomatic solutions to prevent further economic disruptions.
