The Tariff Trap: How US Rules on Steel Content Create a No-Win for EU Exporters

European exporters are caught in a “tariff trap” set by complex US rules on steel content, creating a no-win situation where both compliance and non-compliance come with heavy costs. The policy on “derivative” products has become a system that seems designed to penalize firms, regardless of their actions.
The jaws of the trap are the two competing risks. On one side is the demand for a perfect “paper trail” of all metal content. For complex manufacturers, meeting this standard is often impossible, exposing them to the risk of a devastating 200% penalty tariff for any error. This is the risk of attempting full, but potentially flawed, compliance.
On the other side is the strategy of defensive over-declaration. As seen with a German motorcycle firm, companies can choose to state a higher metal content than is accurate. This avoids the 200% penalty but means they voluntarily pay more in initial duties than required. This is the cost of avoiding the compliance risk.
Either way, the exporter loses. They either gamble on a perfect audit and risk a catastrophic fine, or they accept a smaller, guaranteed financial hit. There is no third option that allows for good-faith, error-free operation without financial penalty.
This tariff trap is a source of intense frustration in Europe. It is viewed not as a legitimate trade measure but as a punitive system that puts foreign companies at an inherent disadvantage. The calls for a “strong new trade measure” from the EU are a direct attempt to find a way to disarm this trap.