The US imposed 50% tariffs on EU steel and aluminium in June, demanding proof of origin for finished products.
Importers must track material origins, creating extra costs and complex compliance issues for European industries.
Supply Chains Struggle with “Melt and Pour” Rule
The European Automobile Manufacturers’ Association said tracing steel and aluminium across multiple suppliers proves extremely difficult.
Many suppliers lack the necessary information, forcing companies to coordinate across several tiers.
Parts combining steel, aluminium, and copper fall under multiple tariff categories, adding complexity and confusion.
In August, the US extended tariffs to 407 more products, including machinery, wind turbines, construction materials, and fire extinguishers.
Industries Face Financial and Administrative Pressure
ACEA warned that generic materials essential to car manufacturing now face tariffs, increasing costs for manufacturers.
Some carmakers already report substantial financial losses due to rising tariffs and extra paperwork.
CECIMO stated tariffs create uncertainty, higher expenses, and administrative burdens for machine tool exporters.
The EU failed to secure steel and aluminium exemptions in July’s trade deal but hopes to negotiate tariff rate quotas to ease export costs.
