European fears of a “rolling and growing” US tariff list are being realized as the Commerce Department considers adding 700 new items for “steel derivative” levies. This move, according to European exporters, “makes a mockery” of the trade deals they negotiated with the US.
The UK’s deal included a 10% baseline tariff, and the EU’s 25%. However, this new policy, driven by requests from US firms, would add another tariff based on the steel content of finished goods. This means products like bicycles or baking pans could be taxed twice.
The US companies—like Red Gold canning and Guardian Bikes—argue this is a matter of fairness. They pay high tariffs on raw steel (up to 50%), while they claim foreign competitors can import finished goods with “no comparable tariff.”
This argument has been highly effective. An August consultation added 407 items to the list with an almost 100% approval rate. This has fueled the new, larger round of requests, which were submitted before an October 21 deadline.
The list of new items is extensive, including 200 industrial machines, mattress springs, and steel truck wheels, demonstrating the broad reach of the new protectionist push from within American industry.
An adviser at Flint Global noted this “expansionist” policy highlights the “uncertainty in the relationship” between the US and its allies, suggesting the formal trade pacts offer little protection from this additive tariff strategy.