Trade analysts are pointing to a new round of 700 US tariff requests as proof of the “uncertainty in the relationship” between the US and its allies. Despite the UK and EU having formal trade deals, this new “steel derivative” policy threatens to bypass them.
The policy allows US firms to petition for new tariffs on steel-containing goods. An adviser at Flint Global, George Riddell, noted the US has taken a “liberal, expansive approach,” with almost no rejections in a previous round. This has spurred the new, larger wave of requests.
US firms like Guardian Bikes and Red Gold argue they are at an “unfair” disadvantage. They pay high tariffs on raw steel, while they claim foreign competitors can import finished goods with “no comparable tariff.”
For the UK and EU, this is a major problem. Their trade deals set baseline tariffs (10% and 25% respectively). This new policy would add another levy on top of those rates, a move European exporters say “makes a mockery” of the agreements.
A decision on the 700 new items is expected by January, following an October 21 submission deadline. This has left allies bracing for a new, unpredictable trade barrier.