European industry leaders are expressing profound concern over the US Commerce Department’s “expansionist” approach to trade tariffs. A new list of 700 products, from bikes to baking trays, is being considered for “steel derivative” levies, a move that allies in the UK and EU see as a direct threat to their existing trade agreements.
These agreements had supposedly settled tariff rates, with the UK accepting a 10% baseline and the EU 25%. However, this new mechanism would add another tax on the steel content of finished goods, on top of the baseline. European exporters are complaining that this “makes a mockery” of the deals they reluctantly accepted.
The push is entirely domestic to the US. American firms, claiming “unfair” competition, are petitioning the government. For example, US cookware makers American Pan and Chicago Metallic argue that China is “flooding the market” with low-cost goods, justifying a new tariff.
These arguments are finding a receptive audience. A previous round of requests in August saw 407 items added to the list, with experts noting that almost zero requests were rejected. This has fueled confidence among US firms and deep anxiety among global exporters.
With the deadline for the new requests having passed on October 21, a decision is expected by January. This has left European manufacturers bracing for a new round of tariffs that will apply globally, hitting allies and competitors alike.