The European Union’s industrial sector is in turmoil, decrying what it calls a “strange interpretation” of trade deals by the United States that is leading to an ever-expanding list of tariff-hit goods. This unpredictable expansion is straining transatlantic relations and has left businesses grappling with crippling uncertainty.
At the heart of the issue is the US policy on “derivative” products. What started as a tariff on raw steel has morphed into a system that penalizes manufactured goods containing metal. With 407 categories already on the list and more expected, the scope of the trade dispute is continuously and arbitrarily widening.
Luisa Santos, a senior representative at BusinessEurope, captured the frustration, stating, “The problem now is that the US is making a strange interpretation of the deals, increasing the list of derivatives.” She warned that this behavior is making the trade relationship “quite turbulent” and is eroding business confidence.
This turmoil is translating into real-world costs. Manufacturers now face the daunting task of auditing their own complex products for steel content. As German MEP Bernd Lange pointed out, the fear of massive penalties for mistakes is so great that some companies are pre-emptively overpaying their tariffs just to avoid the risk.
As the EU braces for the next round of additions to the US list, the calls for a more assertive European trade policy are growing. The “strange interpretation” from Washington is seen as a direct challenge that requires a strong, unified response to protect the continent’s manufacturing base.
