Global manufacturers are on edge as the US prepares to add 700 new items to its “steel derivatives” tariff list. The list is extensive, including consumer goods like bicycles and commercial kitchenware, as well as 200 different types of industrial machines used in tunnelling, printing, and flooring.
The requests came from American firms before an October 21 deadline. This is the second such consultation in three months, and it was spurred by the near-100% success rate of the first round in August, which added 407 items. A decision on the new list is expected by January.
The US companies, like Guardian Bikes and Red Gold canning, argue they are being undercut. They claim they pay high tariffs on raw steel, while foreign competitors can import finished goods with steel components “with no comparable tariff,” creating an “unfair” advantage.
This “expansionist” policy is causing alarm in Europe. The UK and EU, which have separate trade deals with baseline tariffs of 10% and 25% respectively, now face an additional tariff on their steel-containing goods.
This “additive” levy, they argue, “makes a mockery” of their agreements, creating a “rolling and growing” list of tariffs that injects deep uncertainty into the trade relationship.
Analysts warn this move is creating deep “uncertainty” for US allies. The tariffs, though often justified by citing competition from China, will be applied globally, impacting allies and competitors alike.