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, now face an additional tariff on their steel-containing goods, on top of their baseline rates. They argue this “makes a mockery” of their agreements.
Analysts warn this move is creating deep “uncertainty in the relationship” with US allies. The tariffs, though often justified by citing competition from China, will be applied globally.
