Based on a preliminary assessment by the European Commission, roughly €23 billion worth of European exports containing steel and aluminum are vulnerable to increased American duties following a major policy overhaul by President Donald Trump.
In early April, the US administration fundamentally altered how these tariffs are applied. Rather than basing the tax on the actual metal content, levies are now calculated against the total value of the final product. This shift was triggered by a late February Supreme Court ruling that struck down earlier „reciprocal” tariffs, prompting Washington to pivot back to Section 232 national security provisions to maintain trade pressure.
The Financial Impact:
While the total value of EU goods caught in the crosshairs has decreased from €67 billion to €52 billion annually, the reality is a mixed bag for European exporters.
The Winners (€28.3 billion): Products that will benefit from either complete removal from the tariff list or protection under a 15% cap.
The Losers (€23 billion): Exports that miss out on relief and will face steeper duties than before.
The revised system introduces a three-tiered structure:
- 50% tariff on raw metals and fully metallic goods (like pipes).
- 25% tariff on derivative products heavily reliant on these metals (like appliances).
- 10% tariff for foreign goods manufactured using US-sourced metals.
Products with less than 15% metal content remain exempt from these specific duties.
The rapid enforcement of these rules—taking effect just four days post-announcement—has created significant friction. EU Trade Commissioner Maroš Šefčovič recently met with US Trade Representative Jamieson Greer to seek assurances regarding a previously negotiated trade pact from Turnberry, Scotland. However, patience in Brussels is wearing thin. Key European lawmakers, with strong backing from France, are pushing to delay the transatlantic deal entirely until Washington drops its derivative tariffs to the agreed 15% threshold. Meanwhile, the White House remains steadfast, emphasizing that reshoring critical manufacturing and balancing the trade deficit are non-negotiable priorities of the „America First” agenda.
