The trade relationship between the European Union and the United States is becoming “quite turbulent,” according to a top European industry representative, as the US continues to unilaterally expand the list of goods subject to steep steel tariffs. This unpredictable policy is creating chaos for exporters, who fear that products from motorbikes to window frames could be next on the hit list.
At issue is the US’s growing catalog of “derivative” products. This list targets goods that contain steel or aluminum, a significant departure from the original focus on raw materials. With 407 product categories already included—ranging from bulldozers to rail cars—the scope of the tariffs has grown dramatically, catching many European businesses in its net.
The main complaint from industry leaders like Luisa Santos of BusinessEurope is the lack of clarity and stability. The US has opened a new consultation, which European sources believe is designed to further lengthen the list. This “ad hoc” approach makes it impossible for companies to forecast costs or manage their supply chains effectively.
The real-world consequences are stark. Manufacturers are now burdened with proving the exact metallic content of their goods. Bernd Lange, a leading German MEP, explained that some companies are so fearful of draconian penalties for misreporting that they are opting to over-declare and overpay on their tariffs, a testament to the dysfunctional environment the policy has created.
As this trade friction intensifies, the European industrial complex is calling for action. Eurofer, the steel trade body, has advocated for strong new measures to preserve the EU’s manufacturing base. For many, this is no longer a targeted trade dispute but a broad challenge to the stability of transatlantic commerce.