A new protectionist push from within the United States has European allies on high alert. American firms have asked the Commerce Department to add 700 new products to a “steel derivatives” tariff list, a move the UK and EU fear will undermine their existing trade deals.
The US companies, from bike makers to cookware producers, argue they are at an “unfair” disadvantage. They claim competitors, often from China, are “flooding the market.” Their core argument is that they pay tariffs on raw steel, while importers of finished goods do not.
This argument has been overwhelmingly successful. A previous list of 407 items in August was approved with an almost 100% success rate. This has fueled the new, larger round of requests, which were submitted before an October 21 deadline.
For European exporters, this is a “rolling and growing” nightmare. They had already agreed to new trade frameworks with baseline tariffs (10% for UK, 25% for EU). This new policy would add another tariff on top of those rates, a move they say “makes a mockery” of the pacts.
A decision is expected by January. Analysts warn this “expansionist” US policy is creating deep “uncertainty in the relationship” with its key allies, despite the formal deals.