Thyssenkrupp warns U.S. tariffs could prompt cheap Chinese steel to flood Europe
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Thyssenkrupp warns Donald Trump’s steel tariffs could deepen European capacity issues by squeezing European exports while prompting Chinese producers to flood more goods .
Steel maker chief financial officer Jens Schulte told reporters Thursday that the company will analyze the indirect effects of tariffs “in the coming months”, the U.S. president announced on Monday.
Schulte said tariffs on all imports of steel and aluminum to the U.S. may be the world’s largest steel exporter to transfer excess output to Europe.
“Chinese players sent to the United States today may face higher tariffs and may try to deliver more tax rates to Europe,” Schulte said.
Last year, European steel manufacturers called on EU regulators to take action on cheap Chinese imports as prices are lower than the cost of production at rising energy costs in the region.
Thyssenkrupp’s steel business (who was the jewellery in the German industry) has suffered a downturn in demand in Europe, due to lower production by automakers in the region.
In November, it announced a plan to cut 11,000 jobs (about 40% of the Duisburg-based Ministry of Steel’s workforce) as it attempts to reduce its productivity to a quarter.
Thyssenkrupp has cut the value of its steel units by 300 million euros through a series of books written. Meanwhile, the company has negotiated with Czech billionaire Daniel Kretnisky, which plans to increase his stake in the steel manufacturer by 20% to 50%.
Schulte said on Thursday that it paid a large submarine contract to the naval department, meaning it paid 1 billion euros in advance before the merger and acquisition would reach €300 million this year. The figure was its previous guidance, which was a guidance for losses between 200 million euros and 400 million euros.
Thyssenkrupp’s share price rose 9% in the mid-term of Frankfurt in the news.
Thyssenkrupp CEO Miguel López said in a statement that the company has “worked” in its naval commercial Tyssenkrupp’s planned spin-off company.
The company plans to list minority stakes in the business after U.S. private equity group Carlyle withdrew its interest in partial takeover in October. Berlin is hesitant about the possibility of selling a strategic company to a foreign entity.
