Trade analysts are warning of growing instability in transatlantic commerce as the US pursues what is being called an “expansionist” tariff policy. The US Commerce Department is currently evaluating a new tranche of nearly 700 products for “steel derivative” levies, a move that experts say highlights deep uncertainty in relationships with allies like the UK and EU.
The core of the issue stems from a mechanism allowing US companies to petition for tariffs on imported goods containing steel. According to George Riddell, a senior adviser at Flint Global, the US has taken a “very liberal, expansive approach,” with almost no requests for inclusion being rejected in the last round. This 100% success rate in August, which added 407 items, has spurred the new, larger wave of requests.
The push is domestic. US firms, from mattress spring makers to industrial machine manufacturers, submitted proposals before the October 21 deadline. They argue that while they pay tariffs on raw steel, foreign competitors can import finished goods with steel components tariff-free, creating an “unfair” market.
For international partners, this policy effectively nullifies the stability of existing trade agreements. The UK, for example, has a deal with a 10% baseline tariff and 25% on steel. The EU has rates of 25% and 50%. These new derivative tariffs would be added on top of those baseline rates, a move European exporters say “makes a mockery” of the agreements.
A decision on the new list is expected in December or January. If approved, as is widely expected, it will impact a vast range of goods, from Italian high-performance bicycles to British-made industrial components, further straining global trade relations.