The US tariff war is entering a new and alarming phase for Europe, moving beyond raw steel to target a vast and growing list of “derivative” manufactured goods. This expansion is rattling industries across the EU, who fear the seemingly arbitrary inclusion of products ranging from wind turbines to tables with metal legs could inflict severe and lasting economic damage.
The policy shift has already seen 407 categories of goods, including heavy machinery, rail cars, and furniture, added to the tariff list. These are products that are not steel, but are made with steel. The EU steel industry, already hit by a 50% tariff, now sees the entire manufacturing ecosystem threatened by this ever-widening net.
A key source of anxiety is the open-ended nature of the US process. A new consultation, with a deadline of September 29, is underway to review the list. European industry groups are convinced this is a prelude to further expansion, with the list potentially being updated three times a year. This creates a state of perpetual uncertainty for businesses.
The compliance burden is creating absurd situations. German MEP Bernd Lange recounted how a motorcycle factory, unable to perfectly trace the origin and quantity of all its metal components, deliberately overstates its steel content in customs declarations. This costly move is seen as preferable to risking a 200% penalty for an unintentional error.
In response to this growing crisis, there are loud calls for countermeasures. The UK government is seeking clarification, while trade unions are campaigning for pledges to support local industry. Pan-European bodies like Eurofer are demanding new trade defense mechanisms, arguing that the viability of the EU’s entire manufacturing sector is now on the line.
Beyond Steel: US Tariffs on “Derivative” Goods Rattle European Manufacturers
