Krone halts agricultural machinery exports to the US due to new “steel” tariffs

One of Europe’s largest agricultural machinery companies, Krone, has been forced to suspend exports of large-scale equipment to the US due to “hidden” tariffs that have hit hundreds of products, from knitting needles and hair dryers to combine harvesters.

The Trump administration has imposed tariffs on 407 specific products, from small embroidery tools to range hoods, refrigerators, grills, elevators, building structures, agricultural machinery and windmills, according to a list of steel derivatives drawn up in consultation with US manufacturers.

As a result, from August 18, companies, including Krone and construction company Liebherr, must submit detailed certificates to customs authorities about the origin, weight and value of any steel in their products – down to nuts and bolts.

Krone, based in Lower Saxony, has 10,000 employees and has lost its second-largest market, the United States, which brought in about $130 million a year.

CEO Bernard Krone said the new tariffs were a “huge shock” because an agreement with the EU had seemed at least predictable until the “steel list” was published on August 18. The problem is compounded by the fact that the United States has allowed the list to be updated several times a year, so companies are constantly having to adapt.

If the documents are filled out incorrectly, customs can impose a 200% duty, as on Russian steel products, and freeze refunds, logistics company Flexport said.

To avoid major losses, Krone has decided to temporarily stop production at some lines, extend employee vacations and will only send a test container of smaller machines to the United States – mowers, rakes and hay tedders.

“We will send them this week or next week. In four weeks we will know if the documents are filled in correctly,” said Krone.

European Trade Commissioner Maroš Šefčovič acknowledged that the new requirements were “very complex” and asked US Commerce Secretary Howard Latnick to review them.

Tags: machinery, Krone, USA, duties