The US “steel derivatives” tariff list, which already hits items from Ikea tables with metal nuts to German combine harvesters, is set to more than double. American firms have requested 700 new items be added, on top of the 407 approved in August.
This new consultation, which ended October 21, was driven by the near-100% success rate of the first. This has fueled fears among global exporters that this new, larger list will also be approved in December or January.
The requests come from a broad range of US industry. Guardian Bikes is asking for tariffs on bicycles, American Pan on baking trays, and Red Gold on tin cans. They all cite “unfair” competition from foreign imports.
The specific “loophole” they cite is that US firms pay high tariffs on raw steel, while foreign firms can import finished goods containing steel without a comparable levy.
This is ringing alarm bells in Europe. The UK and EU, which have separate trade deals with the US (with 10% and 25% baseline tariffs), now face an additional tariff on their steel-containing goods.
They argue this “makes a mockery” of their agreements, creating a “rolling and growing” list of tariffs. Analysts see this as an “expansionist” US policy that is creating deep “uncertainty in the relationship” with its key allies.