“Mockery of Deals”: Add-On US Tariffs Threaten UK/EU Trade Stability

European industry leaders are warning that a new “add-on” tariff policy from the US “makes a mockery” of their existing trade agreements. The US is considering adding 700 new products, from bikes to baking pans, to a “steel derivatives” list, which would stack new taxes on top of agreed-upon rates.
The UK’s deal, for instance, set a 10% baseline, and the EU’s 25%. This new, “rolling” list would impose an additional levy on the steel content of finished goods. This “double-tax” threat has European industry leaders on high alert.
The push is domestic. American firms, from mattress spring makers to bike manufacturers, have petitioned the government, claiming “unfair” competition. Their argument is that they pay tariffs on raw steel, while foreign competitors can import finished goods tariff-free.
This argument has been met with a “very liberal, expansive approach” by the US. A previous round in August saw 407 items added with almost no rejections, fueling fears for this new, larger list.
The requests were submitted before an October 21 deadline. A decision is expected in December or January, 60 days after the deadline.
This move has confirmed European fears of an “expansionist” US policy. Analysts at Flint Global note it highlights the “uncertainty in the relationship” with allies, despite the formal trade pacts.