Global Trade Pacts Threatened by New “Additive” US Tariff Strategy

Existing trade agreements between the US and its allies, including the UK and EU, are being threatened by a new “additive” tariff strategy. The US Commerce Department is poised to add 700 new products to a “steel derivatives” list, which would impose new taxes on top of the rates already agreed upon in those pacts.
European exporters had reluctantly accepted new trade frameworks with baseline tariffs of 10% (UK) and 25% (EU). However, they are now alarmed that this new “rolling” list will mean their goods are taxed twice: once on the baseline value, and a second time on their steel content.
The push for these new tariffs is coming from US companies. Firms ranging from Guardian Bikes to Red Gold tomato canning have filed petitions, claiming they are being undercut. Their argument is that they pay tariffs on raw steel, while foreign importers of finished goods do not.
This argument has been highly successful. An August list of 407 items was approved with what experts call a near-100% success rate. This precedent has fueled the new, larger round of requests, with a decision expected in December or January.
An adviser at Flint Global noted this “expansionist” policy confirms European fears and highlights the “uncertainty in the relationship” with allies. The tariffs, though often aimed at China, will be applied globally, hitting European exporters.