With a September 29 deadline fast approaching, the European steel industry is anxiously awaiting the next move from the United States in an escalating trade conflict. A US consultation is expected to result in an expanded list of “derivative” products subject to heavy tariffs, adding to the 407 categories already targeted and deepening the crisis for European manufacturers.
The core of the problem is the widening scope of the tariffs. Initially aimed at raw steel imports, the policy now encompasses a vast range of manufactured goods that contain steel, from heavy industrial equipment like wind turbines to consumer items like furniture. This expansion has blindsided many businesses and created a climate of profound instability.
Industry leaders believe the US consultation is a clear signal of intent “to expand, not to cut” the list of goods. This prospect of a perpetually growing list, reviewed multiple times a year, strikes at the heart of business planning. Luisa Santos of BusinessEurope noted that with one side constantly moving the goalposts, it is impossible to achieve the certainty needed for investment and growth.
The compliance challenges are already proving immense. Companies are struggling to document the precise metallic content of their products. German MEP Bernd Lange shared the case of a motorcycle maker that overpays on its declared steel content simply to insure itself against the possibility of a 200% penalty for an unintentional error, a costly but necessary precaution in the current environment.
As the deadline passes, the EU’s industrial sector is calling for a robust defense. Trade associations and unions are united in their demand for new measures to protect European manufacturing from what they see as an unpredictable and damaging US trade strategy. The outcome will have significant implications for millions of jobs across the continent.