Thyssenkrupp Navigates a Tale of Two Headwinds: EU Steel Tariffs vs. Industrial Job Cuts
Published on 07/01/2026 at 17:08 | Redaktion boerse-global.de
Thyssenkrupp is living a split-screen reality. In Brussels, Brussels’ decision to slash import quotas has thrown a lifeline to its ailing steel division, while in Dortmund, hard-nosed cost-cutting at the group’s engineering arm is deepening the gloom. The conflicting signals leave investors trying to weigh which force will dominate the company’s near-term trajectory.
New European Union rules took effect this week, ratcheting up protection for domestic steel producers. The annual duty-free quota for steel imports has been slashed by 47 percent to 18.3 million tonnes, and any shipments exceeding that threshold now face a 50 percent punitive tariff — double the previous rate. The measures target global overcapacity, which industry groups estimate at 620 million tonnes this year, with expectations that the glut could keep swelling into 2027. According to the European steel association Eurofer, as much as 15 million tonnes of production capacity could shift back into the EU as a result. For Thyssenkrupp, which continues to hunt for a buyer for its steel business, the move sharply reduces the competitive threat from cheap imports, particularly from China, India and Turkey.
But behind the tariff shield, internal pressures are mounting. Thyssenkrupp Uhde, the group’s plant-engineering subsidiary, has announced 180 job cuts at its headquarters in Dortmund. Division chief Nadja Håkansson is implementing a harsh austerity programme as clients in the chemicals sector postpone large-scale capital projects. The works council has warned that the restructuring risks transferring critical skills and tasks abroad. The slowdown in big-ticket orders — both in chemicals and in energy-transition infrastructure — has forced the unit to tighten its belt aggressively.
Should investors sell immediately? Or is it worth buying Thyssenkrupp?
Investors appear to be focusing more on the steel side for now. Thyssenkrupp shares traded at 10.54 euros earlier on Wednesday, up 1.69 percent on the day, after touching 10.41 euros earlier in the week. The stock stands about 5.4 percent above its 200-day moving average of 9.99 euros, though it remains a shade below the 50-day average of 10.64 euros. The recent bounce has been sharp: from the March low, the equity has climbed more than 46 percent. Yet the longer-term picture is more mixed — the shares have shed roughly 8 percent over the past 30 days, suggesting that the initial euphoria over the tariff news is being tempered by the operational drag elsewhere in the group.
The core narrative for Thyssenkrupp remains the future of its steel division, which is both shielded by the new trade barriers and burdened by the heavy cost of transitioning to green production. Economists have argued that without state-guaranteed pricing for hydrogen, the shift to low-carbon steelmaking remains economically precarious, with some calling for a subsidy rate of 12 euro cents per kilowatt-hour. That uncertainty is one reason the conglomerate has struggled to line up a buyer or joint-venture partner for the business.
All eyes now turn to August 13, when Thyssenkrupp is due to release its fiscal third-quarter numbers. In the preceding quarter, earnings per share came in at precisely zero, underscoring the margin pressure. The upcoming report will offer the first real glimpse of whether the improved trading environment in steel can offset the weakness in plant engineering — and whether the stock’s recent rally has any durable foundations.
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