German Industry in Crosshairs of Expanding US Steel Duties

German industry, a powerhouse of European manufacturing, finds itself directly in the crosshairs of expanding US steel duties that are now targeting finished products like motorcycles. A recent account from a German MEP reveals the intense pressure and operational chaos that the “derivative” goods policy is inflicting on the nation’s exporters.
The problem has escalated from simple tariffs on raw steel to a complex system targeting goods containing metal. The US has already put 407 product categories on this “derivative” list and is now consulting on further additions. This has created massive uncertainty for manufacturers of complex, high-value goods.
Bernd Lange, a German MEP and chair of the European parliament’s trade committee, shared a revealing story from a visit to a German motorcycle factory. He explained that the company cannot produce a perfect paper trail for all the steel and aluminum in its vehicles, down to the smallest components.
This inability to provide perfect documentation puts the firm in an impossible position. To avoid the risk of a 200% penalty for an inaccurate declaration, the company defensively overstates its metal content. “They declare 50% because otherwise they are in danger of getting tariffs of 200%,” Lange stated, highlighting the costly dilemma.
This example from Germany’s famed motorcycle sector illustrates the wider threat to the country’s export-oriented economy. As the US tariff net widens, more German industries are being harmed, prompting loud calls from business leaders and politicians for a firm EU response to protect its economic heartland.