A sense of dread is spreading through the European Union’s industrial sector as the United States considers adding even more products to a list of goods subject to heavy steel tariffs. This “rolling list” of “derivative” products threatens to pull everyday items, from windows to doors, into a trade dispute originally aimed at curbing Chinese imports, creating profound uncertainty for manufacturers across the continent.
The controversy stems from a US policy that initially imposed punitive tariffs on raw steel but has since evolved. In August, the US designated 407 product categories as “derivative” goods, meaning products containing steel. This sweeping list included everything from massive wind turbines and bulldozers to furniture and rail cars, signaling a significant escalation in the trade measure’s scope.
Industry leaders are now sounding the alarm over a new consultation period, which ends on September 29, believing it is designed to expand, not shrink, the already extensive list. Luisa Santos of BusinessEurope described the transatlantic trade relationship as “becoming quite turbulent,” citing the US’s unpredictable power to add new items to the tariff list, thereby undermining any sense of market stability.
The practical consequences for businesses are severe. German MEP Bernd Lange highlighted the plight of a motorcycle manufacturer unable to precisely track the origin of every steel nut and bolt. Faced with the threat of a 200% penalty for misdeclaration, the company preemptively declares a higher steel content than may be accurate, paying more in tariffs just to avoid catastrophic fines.
In response, industry bodies and unions are mobilizing. Eurofer, the European steel trade association, is calling for robust new trade measures to protect not just the steel sector but the entirety of EU manufacturing. Meanwhile, British Steel and trade unions are urging domestic support, as the entire European industrial landscape braces for the next wave of economic pressure from Washington.