A major push by American industry has added 700 new products to a potential tariff hit list, with a decision expected from the Commerce Department by January. The requests for “steel derivative” levies were submitted before an October 21 deadline, the second such consultation in three months.
The push was encouraged by the near-100% success rate of an August list, which added 407 items. Now, firms like Guardian Bikes and Red Gold canning have submitted their own multi-page pleas, arguing that foreign competition is “unfair.”
Their argument is that US firms pay high tariffs (up to 50%) on raw steel, while foreign firms can import finished goods, like tin cans or bikes, without that comparable cost. This, they claim, is “flooding the market.”
This “expansionist” policy is ringing alarm bells in Europe. The UK and EU, which have separate trade deals with the US, now face an additional tariff on their steel-containing goods, on top of their baseline rates (10% and 25% respectively).
This “additive” tariff, they argue, “makes a mockery” of the stability the trade pacts were supposed to provide. A single item could be subject to a “double tax.”
Analysts warn this “liberal” approval process is creating deep “uncertainty in the relationship” with US allies, making a “mockery” of existing trade agreements.