European exporters are accusing the US of “making a mockery” of their trade agreements as the Commerce Department considers new tariffs on 700 products. This new “steel derivative” list would add taxes on top of the baseline rates the UK and EU already agreed to.
The UK’s deal, for instance, set a 10% baseline, and the EU’s 25%. This new, “rolling” list would impose an additional levy on the steel content of finished goods, from bicycles to baking pans. This “double-tax” threat has European industry leaders on high alert.
The push is domestic. American firms, from mattress spring makers to bike manufacturers, have petitioned the government, claiming “unfair” competition. Their argument is that they pay tariffs on raw steel, while foreign competitors can import finished goods tariff-free.
This argument has been met with a “very liberal, expansive approach” by the US. A previous round in August saw 407 items added with almost no rejections, fueling fears for this new, larger list.
A decision on the 700 items is expected in December or January, following an October 21 submission deadline. This has left allies bracing for a new, unpredictable trade barrier.