European industry leaders are voicing fears of a “rolling and growing” list of US tariffs that could bypass their existing trade agreements. The anxiety follows a new call by the US Commerce Department for products to be added to a “steel derivatives” list, which has already resulted in 700 new items being proposed by US firms.
These new tariffs would target products that merely contain steel, such as bicycles, baking trays, or industrial machinery. This is separate from, and in addition to, the tariffs on raw steel imports. European exporters worry this means goods could face a baseline tariff (10% for the UK, 25% for the EU) plus a new steel content tariff.
The demands are coming from American companies who feel disadvantaged. For example, US can-maker Red Gold pays high tariffs on raw tinplate steel, but its foreign competitors can import finished cans without a similar levy. Similarly, US baking pan makers complain of being “flooded” by low-cost Chinese products.
What alarms international observers is the high probability of success. An earlier round in August saw 407 products added to the list with what experts describe as a near-100% approval rate. This has fueled concerns that the US is pursuing an “expansionist” policy, as noted by an adviser at Flint Global.
A decision on the 700 new items is expected by January, following the October 21 submission deadline. This move has injected significant uncertainty into the trade relationship, leaving allies in the UK and EU bracing for another round of costly import duties.