Alarm bells are ringing in industrial centers across Europe as businesses brace for a new protectionist assault from the United States. The US Commerce Department is expected to approve a massive new list of nearly 700 products for “steel derivative” tariffs, blindsiding exporters who believed they were protected by existing trade deals.
European manufacturers say the move “makes a mockery” of hard-won agreements. The UK’s deal, for instance, set a 10% baseline tariff, while the EU’s was 25%. This new, “rolling and growing” list would impose additional levies on any product containing steel, on top of the baseline rate, creating a chaotic and unpredictable trade environment.
The requests are being driven by American companies. A wide array of firms, from bike maker Guardian Bikes to cookware manufacturer Chicago Metallic, have petitioned the US government. Their complaint is that foreign competitors, often citing China, are “flooding the market” with low-cost goods that don’t face the same steel tariffs they do.
The requests cover a huge range of goods, from bicycles and baking trays to industrial tunnelling machines and mattress springs. With a near-100% success rate for the previous 407 items listed in August, there is little optimism that these new 700 items will be rejected.
A final decision is expected from the Commerce Department in December or January. For global companies, from Italy’s Pinarello to the UK’s Brompton, it represents a new trade barrier that undermines the stability of the global economic order.