A new report from advisory firm Flint Global suggests the US has adopted an “expansionist” policy on tariffs, confirming the worst fears of European industry. The US Commerce Department is reviewing 700 new items for “steel derivative” tariffs, with a “liberal” approval process that saw almost no rejections in a previous round.
In August, 407 items were added to the list. The near-100% success rate has spurred this new, larger round of requests from US firms. Companies making bicycles, tomato cans, and industrial machines have all submitted pleas before the October 21 deadline.
These US firms argue they are at a disadvantage. They pay high tariffs on raw steel, while they claim foreign competitors can import finished, steel-containing goods with “no comparable tariff.” This, they argue, is “unfair.”
For the UK and EU, this policy undermines their existing trade pacts. Those deals set baseline tariffs (10% and 25% respectively). This new “derivative” levy would be in addition to those rates.
European exporters say this move “makes a mockery” of the agreements, creating a “rolling and growing” list of trade barriers that is impossible to predict.
A decision is expected by January. George Riddell of Flint Global noted this move “speaks to the uncertainty in the relationship” with allies, even with formal deals in place.