EU industry struggles with new US rules on imports of steel and aluminium

New US tariffs on steel and aluminium designed to determine the origin of steel and aluminium within imported products are creating an additional cost in addition to the baseline US tariffs, according to representatives of EU industry.

“Determining the exact origin of steel or aluminium under the 'melt and pour' rule is extremely complex and often requires cooperation across multiple tiers of suppliers, many of whom may not have this information themselves,” a spokesperson from the European Automobile Manufacturers’ Association (ACEA), told Euronews.

She added: “The situation is further complicated when a single part falls under several tariff categories at once, such as steel, aluminium, and copper.”

In June, the US administration imposed 50% US tariffs on EU steel and aluminium imported to the US. And it went further in August by adding 407 additional product categories such as fire extinguishers, machinery, wind turbines or construction materials that contain or are contained in aluminium or steel.

“Substantial” financial impact

“While most automotive-specific products remain outside the scope, many generic materials essential to car manufacturing are now affected,” ACEA’s spokesperson said.

Some car companies are already facing a “substantial” financial impact, according to the lobby which is still consolidating figures on the consequences for the sector.

Under the EU-US trade agreement reached in August, EU cars are already hit by 15% US tariffs.

Identifying the origin of products is a real headache for industries, which complain about the administrative burden and the associated costs.

“These tariffs place significant pressure on the machine tool sector, increasing costs and uncertainty for European exporters, creating additional administrative burdens related to steel origin declaration requirements,” said in a statement CECIMO, the European association of manufacturing technologies.

The EU didn't secure tariff exemptions for steel and aluminium arriving in the US within the trade agreement concluded in July, but is still hoping to agree tariff rate quotas with the US administration which would ease the burden for EU exports to the US.