A new wave of US tariffs is looming over global trade, as American companies have successfully petitioned the Commerce Department to consider levies on 700 additional imported goods. The “steel derivatives” list targets products containing steel, and this new round includes items like bicycles, baking trays, and truck wheels.
This is the second such request in three months, following an August list that added 407 products, from Ikea tables to combine harvesters. The near-100% success rate of that round has fueled fears among exporters that this new, larger list will also be approved in its entirety.
The requests are driven by US firms claiming “unfair” competition. Guardian Bikes of Indiana, for example, claimed 11 million imports “lost” the US bike industry. Cookware makers American Pan and Chicago Metallic complained of low-cost Chinese products “flooding the market.”
For European allies in the UK and EU, this “rolling and growing” list is a major problem. They argue it bypasses their existing trade deals, which set baseline tariffs (10% for UK, 25% for EU). This new policy would add another levy on top of those rates.
This “additive” tariff structure “makes a mockery” of the agreements, according to European industry leaders. A single product could be subject to a baseline tariff on its full value, and then a second tariff on its steel content.
A decision on the 700 items is expected in December or January, following the October 21 submission deadline. Trade analysts have called the US policy “expansionist” and “liberal,” creating deep uncertainty for global partners.