Fresh trade disputes are brewing as the US moves to expand tariffs on steel-containing goods, a decision European exporters say “makes a mockery” of existing trade pacts. The US Commerce Department is reviewing requests from American firms to add 700 more items to its “steel derivatives” tariff list.
Manufacturers across Europe had already accepted new trade frameworks, including a 10% baseline tariff for the UK and 25% for the EU, with even higher rates for steel. However, this new policy means many goods could now face both the baseline rate on the whole item and an additional levy on their steel content.
This “expansionist” policy, as one expert from Flint Global termed it, is driven by domestic US pressure. US companies like Red Gold (tomato canning) and Guardian Bikes argue they are at a disadvantage. They pay tariffs on raw steel, while foreign firms can import finished goods containing steel without a comparable tax.
The precedent for these requests is worrying for global trade. An August consultation resulted in 407 items being added to the list, with almost no rejections. This has fueled fears that the new, larger list of items—ranging from mattress springs to industrial tunnelling machines—will also be approved.
The deadline for submissions was October 21, and a decision is expected in December or January. This has left European businesses in a state of high anxiety, bracing for another costly hit to their exports.