The list of goods that are affected by the increased steel and aluminum tariff of 50 percent when exported from Europe to the United States has become significantly longer.
And this is affecting Danish export companies.
According to a calculation made by the Confederation of Danish Industries (DI), the value of Danish goods containing steel, aluminum or copper, which are subject to the increased steel and aluminum tariff, has increased by almost 70 percent.
Originally, the value of the goods covered by the American steel and aluminum tariff would amount to 5.7 billion kroner over the course of 12 months.
According to the Confederation of Danish Industries, this amount has now reached 9.6 billion kroner.
Specifically, on August 18, more than 400 new product numbers were added to the US list of goods containing steel, aluminum or copper, says Senior Chief Consultant Peter Bay Kirkegaard, who is DI's representative in USA.
- This means that more Danish exports to the USA will be subject to the 50 percent punitive tariff. And this also means that there are more Danish companies that have to go through the bureaucratic nightmare of figuring out how to calculate the value of the metal content in their products, says Peter Bay Kirkegaard.
If a manufacturer wants to export a product that is on the US list of steel and aluminum products, the company must account for how much of the product consists of, for example, aluminum, plastic or other materials.
The parts of the product that contain steel, aluminum or a metal are subject to a 50 percent tariff, while the rest of the product is subject to a 15 percent tariff, which is the general tariff on goods exported from the EU to the US.
The steel and aluminum tariff is therefore significantly higher than the general tariff.
American companies can apply three times a year to have new products on the US list of products that are to be subject to a 50 percent tariff.
And DI sees this as a problem for competition.
- American companies probably see it as an opportunity to protect their goods from external competition, and therefore we expect more goods to be added to the list, says Peter Bay Kirkegaard.
These are goods such as industrial robots, elevators, various machines and parts for goods such as furniture, generators and engines, which have been included in the updated list of steel and aluminum goods.
Peter Bay Kirkegaard fears that Danish companies could get into trouble if they inadvertently provide incomplete information in connection with exports to the United States and what he describes as a "bureaucratic nightmare".
- We know that the American authorities have said that they will crack down hard on what they believe is cheating in connection with customs declarations, he says.
The increased American tariffs have been introduced and continuously adjusted by US President Donald Trump. His justification is that he wants to protect American businesses and jobs.
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