European farm machinery manufacturer Krone has suspended exports of large equipment to the United States following the introduction of unexpected new tariffs on steel-based goods. The hidden levies affect around 407 specific products, ranging from home appliances to agricultural and industrial machinery.
Since August 18, exporters across Europe have faced new U.S. customs requirements demanding precise documentation of the origin, weight, and value of every steel component used in their products — down to individual nuts and bolts. For companies like Krone, whose machines contain up to 18,000 parts, this requirement has created an almost impossible administrative burden.
Krone’s chairman, Bernard Krone, said the new tariffs were a “big shock,” noting that the U.S. is the firm’s second-largest market, generating approximately $130 million annually. He added that confusion over documentation rules and the risk of costly errors have forced the company to pause shipments and temporarily halt production lines.
Instead of risking its high-value machines, Krone plans to send a “test container” of smaller models, including mowers and rakes, to gauge whether they meet U.S. import standards. Industry experts warn that these hidden tariffs are not only hurting European exporters but also raising costs for U.S. consumers, as higher import expenses eventually trickle down to retail prices.