The US imposed 50% tariffs on EU steel and aluminium in June, demanding proof of material origin in imports.
Importers must now track the origin of steel and aluminium in finished products, creating serious complications for industries.
Industry Struggles with Complex Rules
The European Automobile Manufacturers’ Association said the “melt and pour” rule demands extremely difficult origin tracking.
Suppliers often lack this information, making compliance nearly impossible across multiple tiers of the supply chain.
Parts combining steel, aluminium, and copper fall under multiple tariff categories, increasing the complexity of classification.
US authorities extended tariffs in August to 407 more products, including machinery, turbines, and construction materials.
Tariffs Create Financial and Administrative Pressure
ACEA warned that even without targeting car-specific products, tariffs hit generic materials vital to automotive manufacturing.
Some carmakers already face “substantial” financial losses from rising costs and administrative hurdles.
CECIMO said tariffs push up expenses, add uncertainty, and create heavy paperwork for the machine tool sector.
The EU failed to win exemptions for steel and aluminium in July’s trade deal but seeks tariff quotas instead.
