A new “expansionist” tariff push by the US is blindsiding allies in the UK and EU, creating deep “uncertainty in the relationship,” according to trade experts. The US Commerce Department is reviewing requests to add 700 new products to a “steel derivatives” list, bypassing existing trade agreements.
European manufacturers had already agreed to new trade frameworks with baseline tariffs (10% for UK, 25% for EU). This new policy, however, would add another levy on the steel content of finished goods, a move exporters say “makes a mockery” of the deals.
The push is domestic. American firms, from mattress spring makers to bike manufacturers, have petitioned the government, claiming “unfair” competition. Their argument is that they pay tariffs on raw steel, while foreign competitors can import finished goods tariff-free.
This “loophole” argument, detailed in a 12-page letter by canner Red Gold, has been met with a “very liberal, expansive approach” by the US, as one analyst at Flint Global noted.
A previous round in August saw 407 items added with almost no rejections, fueling fears for this new, larger list. The deadline for these new submissions was October 21.
A decision on the 700 items is expected in December or January. This has left European businesses “steeling themselves” for another economic blow and a new era of unpredictable trade relations.