Germany’s finance minister supports EU steel quota talks with the United States

As negotiations continue between the European Union and the United States over future steel trade conditions, Germany’s finance minister Lars Klingbeil has expressed support for a quota-based approach to safeguard European steel exports. During his inaugural visit to Washington, Klingbeil signaled that Germany would back a solution allowing a defined volume of EU steel to enter the US market under preferential terms.

While the recent EU–US agreement on tariffs set a general rate of 15 percent for most European goods, steel and aluminium remain subject to separate 50 percent duties under existing US measures. A quota arrangement, as now being discussed, would allow a certain volume of EU steel to be exported either duty-free or at reduced rates, with full tariffs applying only beyond that threshold.

Speaking ahead of a meeting with US Treasury Secretary Scott Bessent, Klingbeil acknowledged that final negotiations remain in the hands of the European Commission, but emphasized that Germany’s economic interests—particularly in the steel sector—are clearly at stake. “We are here with German interests,” he stated in a radio interview, adding that the question now is “what more can be done to protect industrial strength and jobs, especially in the steel industry.”

German Chancellor Friedrich Merz had also referred to ongoing quota discussions during a recent public appearance, expressing hope for “reasonable agreements that provide sufficient export opportunities for the European and German steel industries.”

A quota system would echo earlier trade arrangements used by the United States to manage import volumes from major producers, allowing Washington to maintain protective measures while offering limited access under defined conditions. The US administration has not yet publicly responded to the proposal.

The German steel sector, with its strong export orientation and integration into transatlantic supply chains, is seen as particularly exposed to the current uncertainty. Industry representatives have repeatedly warned that prolonged barriers to the US market could have long-term consequences for competitiveness, investment, and employment.

Klingbeil’s visit is part of a broader effort by the German government to reassert its trade policy interests amid shifting global dynamics. The outcome of the steel talks may offer an early indication of how far transatlantic alignment on industrial trade can be rebuilt in the post-agreement environment.

Photo: Tobias Koch / Lars Klingbeil