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Merz Hosts Steel Summit as Berlin Weighs Cheaper Power and EU Tariffs

Officials frame the talks as groundwork for decisions rather than a deal.

Overview

  • Chancellor Friedrich Merz gathers ministers, state leaders, industry and unions at the Chancellery to coordinate a response to a sector squeezed by high energy costs, falling demand and low‑priced imports.
  • Options on the table include an industrial electricity price targeted at about five cents per kWh starting in 2026, extended CO2 cost compensation and reductions in power grid charges.
  • The European Commission has proposed cutting duty‑free steel imports to 18.3 million tonnes per year and levying a 50% tariff on volumes above that threshold.
  • Major producers and several Länder press for stronger trade protection and procurement preferences for EU steel, while some downstream manufacturers warn of higher costs and potential retaliation.
  • Economists from the IW argue electricity relief would be limited and urge accelerated investment in hydrogen supply and power networks to prevent deeper capacity and job losses.