Uncertainty Grips European Industry as US Threatens ‘Rolling List’ of Steel Tariffs

Uncertainty Grips European Industry as US Threatens ‘Rolling List’ of Steel Tariffs

 

BRUSSELS – European industry leaders are sounding the alarm over the United States’ rapidly expanding list of “derivative” products that could be hit by the punitive 50% steel tariffs, threatening to inflict widespread damage across the manufacturing sector.

Following the hike of US steel tariffs from 25% to 50% in June, the White House is now opening up the possibility of a constantly rolling list of affected products, a move EU business leaders say is injecting massive uncertainty into transatlantic trade.

 

The Ever-Expanding List

 

In August, the US Department of Commerce included 407 new product categories—ranging from wind turbines, mobile cranes, and bulldozers to furniture and rail cars—under the “derivative” category. This means the products are subject to the hefty tariff on the value of their steel and aluminum content.

Now, a new consultation that closes on September 29 has raised fears that the intent is “to expand, not to cut” the list, with the US planning to review it three times a year.

• New Targets: Products with even a small metal component, such as windows, doors, and motorbikes, could be added to the tariff list, creating a major headache for importers.
• Business Outcry: Luisa Santos, Deputy Director General at BusinessEurope, warned that the constant expansion of the derivative list is a “strange interpretation” of trade deals and makes it “very difficult to claim we have certainty.”
• Logistical Nightmare: German MEP Bernd Lange, chair of the European Parliament’s international trade committee, highlighted the logistical nightmare for businesses like a motorcycle factory that can’t definitively trace the origin of every nut and bolt, forcing them to declare the maximum 50% tariff to avoid penalties as high as 200%.

 

UK and EU Brace for Impact

 

The tariffs, initially aimed at curbing cheap imports from China, are broadly affecting European producers, including those in the UK who face a 25% tariff. The UK government is seeking urgent clarification on what new products will be affected.

Meanwhile, the European steel trade body, Eurofer, is calling for the EU to implement a “strong new trade measure” to protect the viability of the entire EU manufacturing sector and the millions of jobs it sustains.

Trade unions in the UK are also voicing concern, fearing a new wave of redundancies in a sector already struggling with overcapacity and foreign competition.

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