29 April 2025 – US steel mills have long and extensively campaigned for new tariffs on steel. However, the protectionism that has now been added is increasingly proving to be a boomerang for the steel mills. NATO expresses concern about Finland’s border with Russia. Large EU stainless steel mill and most important chrome mine in the immediate vicinity of the Leningrad military district.
NATO expresses concern about Finland’s border with Russia
According to a recent report in the Wall Street Journal, NATO and Finland are concerned about the almost 1500 kilometre-long border with Russia. The Russian government has been planning to modernise and expand the Leningrad Military District for some time now. Also in the affected region: Europe’s largest stainless steel plant and the most important mine for chrome ore.
Russia significantly expands Leningrad Military District
The Leningrad Military District, a remnant of the Soviet era, borders Finland as well as Latvia, Estonia and Norway. According to media reports, Russia is expanding the capacities of the existing bases there, laying new railway lines and building roads up to the Norwegian border. Moscow is also said to have stored modern T-90 battle tanks in the region instead of sending them to Ukraine. Finland and NATO are concerned about this development.
Scenario: What could happen – if the EU continues to offend important partners
At the beginning of 2024, we already pointed out that Europe’s largest stainless steel mill is located just 230 kilometres from the Russian border and could easily fall victim to acts of sabotage.
Russian long-range bombers on target in minutes?
Looking at the map of the Georgian Foundation For Strategic and International Studies on the distribution of Russian armed forces in the region, the danger that a possible Russian attack could pose to this large mill becomes even more impressive.
In addition to the 80th Arctic Mechanised Brigade in the immediate vicinity of the Finnish border, there is also a base with long-range bombers, which would have a flight time of just under 15 minutes to the site of the stainless steel mill.
EU clearly undersupplied with stainless steel
In view of the current economic situation, which is not the most stable, Europeans should urgently bear this development in mind, especially when considering further trade defence measures. After all, the EU can neither politically nor economically afford the loss of Europe’s largest stainless steel producer with an existing undersupply of at least 25%. What’s more, the EU sources 91% of its primary chrome requirements from Finland – from a mine that is within spitting distance of the aforementioned stainless steel producer.
Urgent suspension of the CBAM market protection measure
Suspending the CBAM market protection measure, which has been heavily criticised from all sides (domestic manufacturers and importers), would not only be a simple way to create more confidence in the markets and provide important economic stimulus, but also to better guarantee security of supply in Europe.
After all, security policy must not become a pretext for artificially maintaining inefficient market structures. Resilience means diversification, not compartmentalisation. Imports from multiple sources in particular ensure Europe’s security of supply.
Not suspending the Carbon Border Tax CBAM would only prove once and for all that the often-mentioned security of supply aspect is nothing more than a fig leaf.
US steel mills: Protectionism becomes a boomerang
Everything was supposed to be better: With new import tariffs on steel and aluminium, the US government wanted to strengthen its domestic industry, secure jobs and boost national production. However, what was intended as a protective measure has had exactly the opposite effect in many places.
The blanket tariffs not only made the import of steel more expensive, but also increased costs along entire supply chains – especially in the automotive industry, one of the most important customers for steel products. Companies were suddenly faced with higher production costs that they could hardly pass on.
Tariff lobbying a clear own goal
One American industry giant, which had lobbied particularly hard for the introduction of new tariffs in recent years and had taken over a Canadian steelworks shortly beforehand, was hit particularly hard. Demand collapsed, plants had to close and more than 1,200 jobs were lost. Investors on the stock market reacted with shock: The company’s share price plummeted by 65 per cent. Other steel makers also struggled with falling sales and dwindling margins.
The example is an impressive illustration of how tariffs may slow down competition from abroad in the short term, but in the long term they can weaken your own industry – especially in a world where markets and supply chains are globally intertwined.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
