The "US Zone Tag" has an interesting story behind it. At the end of WWll, the Allied powers divided Germany west of the Oder-Neisse line into four areas: American, British, French, and Soviet occupational zones. The Americans were responsible for the southern part of Germany, which is where Steiff is located. The forces were tasked at "demilitarizing" Germany, which included shutting down many factories that did, or had the potential to produce items that could be used for combat or aggressive purposes.

When Steiff's very limited postwar production slowly started up again in 1945 - 1946, items could only be sold to the American troops. These restrictions were gradually eased and by 1947 Steiff could sell domestically; by 1949 the company's products were once again available internationally. The "US Zone Tag" insured to the outside world that items produced in Germany were done so in a "civilian" factory and met business and distribution standards set up by the American military government overseeing the occupational zone.