International Trade Barriers Complicated Commodity Flows
Exporters of steel, forestry, and plantation goods must navigate shifting EU and U.S. regulatory and tariff requirements.
Updated on Oct. 6, 2026 in International Trade
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New international trade measures, including a 50 percent U.S. steel tariff and delayed EU deforestation rules, are altering market access for global commodity producers. Indonesia has begun monitoring these evolving barriers to assess impacts on its domestic forestry, plantation, and steel sectors.
Why it matters
These trade hurdles force companies to adjust supply chains to account for heightened carbon emissions levies and aggressive protectionist tariffs. These changes reflect growing efforts by the U.S. and EU to prioritize domestic manufacturing and environmental standards in global trade.
The U.S. has implemented a 50 percent tariff on imported steel, a critical strategic commodity for aerospace and military use. Meanwhile, the EU has deferred the start of its Deforestation Regulation until 2027 to address implementation challenges.
The players
European Union
A political and economic bloc that implements large-scale environmental regulations affecting global supply chains.
United States
A major global economy that utilizes trade tariffs to protect domestic manufacturing and secure strategic industrial commodities.
Indonesia
A significant producer of forestry and plantation commodities that tracks international trade barriers to protect its export interests.
The details
The U.S. steel tariff aims to counter global oversupply and support domestic manufacturing capacity. Simultaneously, the EU Carbon Border Adjustment Mechanism mandates levies on products manufactured using non-renewable electricity. Businesses must now evaluate their supply chain emissions and production sourcing to mitigate these tariff and regulatory costs.
Timeline
The United States imposed a 50 percent tariff on imported steel in 2026.
The European Union is scheduled to implement the Regulation on Deforestation in 2027.
Market Landscape
These actions follow the implementation of the European Union Carbon Border Adjustment Mechanism, which penalizes high-emission imports. This trend marks a shift toward integrating environmental policy directly into international trade and tariff frameworks.
Operators in commodities should immediately assess whether their supply chains fall under the new EU emission-based levies or U.S. steel tariff requirements. Consult with legal or trade counsel to determine if your specific product classification incurs these new costs.
The takeaway
The intersection of environmental regulation and protectionist tariffs is creating a new cost floor for global commodity trade. Managers should track the 2027 implementation of EU deforestation rules to prepare for potential changes in supplier certification requirements.
Further reading
For more on the current climate for cross-border commerce, review our International Trade section.
Source note: This article includes information reported by Antara News.
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