Trade experts are warning that the US has adopted a “liberal, expansive approach” to steel tariffs, confirming the fears of European businesses. An adviser at Flint Global, George Riddell, noted that with “almost zero requests for inclusion rejected last time round,” a new list of 700 products is likely to be approved.
This second consultation in three months comes after 407 items were added to the “steel derivatives” list in August. The success of that round has prompted a flood of new requests from US firms, from bike makers to tomato canners, all submitted before the October 21 deadline.
These American companies, like Red Gold and American Pan, argue they are being undercut. They pay steep tariffs (25-50%) on raw steel, while they claim foreign competitors can import finished goods with steel components “with no comparable tariff,” creating an “unfair” advantage.
This “expansionist” policy is causing alarm in the UK and EU. Exporters there, who are already paying high baseline tariffs under new trade deals (10% for UK, 25% for EU), now face an additional, unexpected levy on their products’ steel content.
They argue this “additive” tariff “makes a mockery” of the stability their trade pacts were supposed to provide. A single item could now be taxed twice: once on its baseline value, and again on its steel components.
A decision on the 700 new items is expected in December or January. The move, as Riddell noted, “speaks to the uncertainty in the relationship” between the US and its allies, despite the deals being in place.