An “expansionist” tariff policy from the US Commerce Department is alarming global trade partners, who fear a “rolling and growing” list of taxed goods. American firms have successfully lobbied for 700 new items, from bicycles to industrial machines, to be considered for “steel derivative” tariffs.
This follows a consultation in August that added 407 products to the list with what experts call a “near 100% success rate.” George Riddell of Flint Global noted the US has taken a “very liberal” approach, approving almost all requests. This has encouraged the new, larger wave of applications.
The US companies argue the tariffs level the playing field. They point out that they pay high tariffs on raw steel, while foreign competitors can import finished, steel-containing goods at a lower rate. Firms like American Pan (cookware) and Guardian Bikes claim they are being “flooded” by low-cost foreign goods.
This policy is causing friction with allies. The UK and EU, which have separate trade deals with the US, now face an additional, unexpected layer of tariffs on top of their baseline rates. They argue this undermines the stability of their agreements.
With a decision on the 700 items expected in December or January after the October 21 submission deadline, businesses around the world are bracing for another hit to global trade.