The European Union’s industrial sector is struggling to find its footing on the shifting sands of US trade policy. The constant evolution of American steel tariffs, particularly the “rolling list” of derivative products, is creating a foundation so unstable that long-term business strategy has become almost impossible.
The ground first shifted when the US imposed punitive tariffs on raw steel. It shifted again when the policy expanded to include 407 categories of manufactured goods. Now, with the prospect of the list being reviewed and expanded three times a year, the ground is in a state of perpetual motion.
“It is very difficult to claim we have certainty,” said Luisa Santos of BusinessEurope, summing up the challenge. Businesses thrive on predictability, but the current US approach is the antithesis of that. It forces companies to be purely reactive, constantly adapting to new rules they have no role in shaping.
This constant change is also a recipe for compliance chaos. As highlighted by the case of a German motorcycle manufacturer, the rules are not only changing but are also incredibly difficult to follow. This leads to costly, inefficient behaviors as companies try to protect themselves from draconian penalties.
The EU’s struggle to keep up with these policy shifts has led to calls for it to build its own, more stable ground. Industry leaders are demanding strong, proactive trade defense measures from Brussels, arguing that it’s the only way to find stability when the sands of transatlantic trade are constantly shifting beneath their feet.