The European Union is bracing for another significant blow to its industrial sector as the United States appears poised to expand its list of products subject to steel tariffs. Following a new consultation period ending September 29, it is widely expected that more “derivative” goods containing metal will be targeted, exacerbating an already tense trade environment.
This policy marks a major escalation from the original tariffs, which targeted raw steel and aluminum. The US has already defined 407 product categories as “derivatives,” including large-scale items like wind turbines and bulldozers, as well as consumer goods. This has widened the conflict, affecting a much broader swath of the European economy.
For European businesses, the rolling nature of the list is the most damaging aspect. The EU steel industry has warned that the US intends to review the list three times a year, creating a state of constant flux. Luisa Santos of BusinessEurope highlighted this, stating that such unpredictability makes it “very difficult to claim we have certainty” in transatlantic trade.
The administrative burden is also proving to be a major challenge. German MEP Bernd Lange pointed to the difficulties faced by complex manufacturers, like a motorcycle company that cannot easily verify the origin of all its metal parts. The fear of a 200% penalty for errors is forcing them into costly defensive strategies, such as overpaying their initial tariffs.
As the impact assessment begins, the calls for a strategic response are growing louder. Eurofer, representing the European steel industry, has urged the implementation of strong new trade measures to protect the viability of the entire EU manufacturing sector and the millions of jobs it supports.
