The US imposed 50% tariffs on EU steel and aluminium in June, demanding proof of origin for finished products.
Importers now face extra costs while verifying the source of materials, creating major challenges for European industries.
Supply Chains Struggle with Complex Rules
The European Automobile Manufacturers’ Association (ACEA) said the “melt and pour” rule requires cooperation across multiple supplier tiers.
Suppliers often cannot provide this information, making compliance difficult.
Parts combining steel, aluminium, and copper fall under several tariff categories, complicating reporting.
In August, the US added 407 more product categories, including machinery, fire extinguishers, wind turbines, and construction materials.
Industries Face Financial and Administrative Pressure
ACEA reported that tariffs now affect generic materials crucial to car production, even if automotive-specific products remain exempt.
Some car companies already suffer substantial financial impacts, with industry figures still under review.
EU cars also face 15% tariffs under the EU-US trade deal reached in August.
CECIMO said tariffs increase costs, raise uncertainty, and impose heavy paperwork on machine tool exporters.
The EU did not secure exemptions for steel and aluminium but seeks tariff rate quotas to reduce burdens.
