Trade experts are warning of “the uncertainty in the relationship” between the US and its allies, even in the presence of formal trade deals. The warning comes as the US Commerce Department considers adding 700 new products to a “steel derivatives” tariff list, following a high-velocity campaign by American firms.
George Riddell, a senior adviser at Flint Global, noted that European fears of an “expansionist” US policy are being confirmed. He pointed out that the US has taken a “very liberal, expansive approach,” with almost zero requests for inclusion being rejected in the last round in August, which saw 407 items added.
This success has emboldened US industry. Companies from bicycle makers to tomato canners have submitted new, detailed requests before the October 21 deadline. Their common argument is that they are being undercut by foreign imports that do not face the same tariffs on steel content that domestic producers do.
For global exporters in the UK and EU, this is a worst-case scenario. They had already agreed to new trade frameworks with baseline tariffs. This new, “rolling” list of tariffs would be stacked on top of those rates, effectively creating a new, unpredictable trade barrier.
A decision on the 700 new items is expected by January. The outcome will be a major test of the US trade relationship with its allies and could impact the price and availability of goods ranging from bicycles to industrial machinery.