Global Businesses Brace for Expanded US Steel Tariffs
Companies worldwide are preparing for another significant round of trade levies from the Trump administration, this time targeting products containing steel, from bicycles and baking trays to industrial machinery. The move comes after American firms successfully lobbied for expanded protectionist measures.
The US Department of Commerce is expected to add approximately 700 new items to an existing list of 407 products already facing additional tariffs due to their steel content. This follows a consultation period that closed on 21 October, just three months after the initial list was established in August.
European Industry Sounds Alarm Bells
Manufacturers across Europe, who had reluctantly accepted higher border taxes under new trade frameworks negotiated with the Trump administration, are now confronting what they see as a betrayal of these agreements. The UK's deal established a baseline 10% tariff on all goods with a 25% rate for steel, while the EU agreed to rates of 25% and 50% respectively.
However, exporters argue that these new derivative tariffs make a mockery of these hard-won agreements. The concern is that many goods could soon face paying the higher steel rate on their metal content in addition to the baseline tariff applied to the entire product's cost, effectively creating a system of double taxation.
George Riddell, a senior adviser at Flint Global, confirmed European fears that the US is adopting an expansionist tariff policy. He noted that companies requesting product inclusions in the August list had a near 100% success rate, creating significant apprehension that most newly proposed items will be approved.
American Companies Driving Tariff Expansion
Among the businesses petitioning the US commerce department are Guardian Bikes in Indiana, which claimed the US bike industry was being lost to imports, and tomato-canning company Red Gold. Other petitioners include manufacturers of truck steel wheels, mattress springs, and approximately 200 different industrial machines used in sectors from tunnelling to printing.
In an 11-page submission, Guardian Bikes blamed severe competition from China for the import of 11 million bicycles in 2024. If their request is accepted, the import duty would apply globally, affecting premium UK brands like Brompton and Italian manufacturers such as Pinarello and Bianchi.
Similarly, Red Gold complained about facing tariffs of 25% on tinplate steel imported from the UK and 50% on steel from other sources, while foreign businesses selling finished cans directly to the US faced no comparable levies.
Two kitchen companies, American Pan and Chicago Metallic, also requested inclusion, arguing that China was flooding the market with low-cost commercial cookware, creating what they termed an unfair advantage.
Uncertain Future for Transatlantic Trade
The latest tariff demands highlight ongoing uncertainty in the UK and EU's trading relationship with the United States, despite recently negotiated deals. A final decision on which products will be added to the new tariff list is expected in December, approximately 60 days after the deadline for requests.
If implemented as feared, these measures could hit exporters as soon as December or January, creating additional financial pressure on European manufacturers already navigating complex post-Brexit and post-pandemic trading landscapes. The situation demonstrates how quickly established trade agreements can be undermined by subsequent protectionist measures, leaving businesses on both sides of the Atlantic facing continued uncertainty.
