A new trade shockwave is building as businesses worldwide brace for another round of US tariffs, this time on a “rolling and growing list” of goods. Alarm bells are ringing across Europe as the US Commerce Department reviews 700 new items, from bicycles to baking trays, to be added to its “steel derivatives” levy list.
This expansion comes just months after 407 products were hit with similar tariffs, a move that stunned US trade partners. European manufacturers, who had already agreed to difficult new trade frameworks with baseline tariffs of 10% (UK) and 25% (EU), now feel betrayed. Exporters say the new derivative tariffs make a “mockery” of these agreements.
The new levies are particularly painful because they would be stacked on top of existing baseline rates. A product would be taxed once at the border, and then taxed again for its steel content, creating a double penalty that could make European goods uncompetitive.
The push is coming from US companies themselves, who are embracing the call for more protection. Tomato-canner Red Gold, for example, complained it pays high tariffs on raw steel while foreign competitors ship in finished cans tariff-free.
Trade experts warn the US is operating an “expansionist” policy with a “near 100%” approval rate for new tariff requests. This has shattered the sense of stability in the EU and UK relationship, proving that even with a deal, the threat of new, unexpected tariffs remains. A decision on the 700 items is expected in December.