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Merz Backs Tariffs, Cheaper Power and EU‑Made Steel Preference After Berlin Steel Summit

Key pledges hinge on EU approval.

Overview

  • After talks with state leaders, industry and unions, Merz called the sector’s situation an existential crisis and said there is consensus on three priorities: stronger trade protection, lower energy costs, and lead markets for green steel.
  • Merz endorsed the European Commission plan to cut the duty‑free steel import quota to 18.3 million tonnes and impose 50% tariffs above that level, a package that still needs EU agreement.
  • Berlin aims to start a subsidised industrial electricity price on 1 January 2026 and to extend and broaden power cost compensation, with the goal of allowing both instruments to be combined.
  • The government will push for preference for European steel in publicly funded infrastructure projects, while the finance minister urged ending remaining imports of Russian semifinished steel.
  • Officials pledged to accelerate the hydrogen core network and allow pragmatic interim fuels for the green transition, as studies warn a loss of primary steelmaking could cost up to €50 billion annually and endanger tens of thousands of jobs.