A “very liberal, expansive approach” by the US Commerce Department to tariff requests has fueled a new, massive submission from American industry. After a near-100% success rate in August, US firms have now proposed 700 more items for “steel derivative” tariffs, with a decision expected by January.
In August, 407 items were added to the list, with almost no rejections. This precedent, noted by adviser George Riddell of Flint Global, has encouraged a new round of applications from firms making everything from bicycles (Guardian Bikes) to tomato cans (Red Gold) and baking pans (American Pan).
These companies argue they are closing a loophole. They pay high tariffs on raw steel imports, but foreign competitors can import finished goods containing steel with “no comparable tariff.” This, they claim, gives imports an “unfair” advantage.
This policy is causing significant friction with US allies. The UK and EU, operating under their own trade deals, now face an unexpected additional levy on their steel-containing goods, on top of their baseline rates. They argue this “makes a mockery” of their agreements.
The deadline for the new requests was October 21. The impending decision has left global exporters bracing for another costly round of tariffs, which, though often aimed at China, will be applied globally.