Businesses worldwide are bracing for a new wave of tariffs proposed by former President Donald Trump that would impact a diverse range of goods, from bicycles to baking trays. The US Department of Commerce has received requests from American companies to add approximately 700 items to a list of products already facing additional tariffs due to their steel content. This list originally included 407 items, such as Ikea tables and German combine harvesters.
Concerns are escalating across Europe as industry leaders fear that this growing list of “steel derivatives” will subject many products to higher tariffs. European manufacturers had previously accepted higher border taxes under new trade agreements with the United States. The UK deal imposed a baseline tariff of 10% on all goods and 25% on steel, while the EU agreed to rates of 25% and 50%, respectively. However, the introduction of derivative tariffs complicates these agreements, as many goods could incur the higher steel-related levies in addition to the baseline tariffs.
Impacts on Various Industries
The latest tariff requests must be submitted by October 21, 2023, ahead of a decision expected in December. This consultation represents the second in three months, and experts note that companies requesting product additions to the first list experienced nearly a 100% success rate. Consequently, there are fears that most of the newly proposed items will be included in the upcoming tariff list, potentially impacting exporters by December or January.
Among the companies advocating for inclusion are Guardian Bikes from Indiana, which expressed concern over the US bike industry, predicting that 11 million bicycles will be imported in 2024. In an 11-page letter to Commerce Secretary Howard Lutnick, the company attributed its challenges to competition from China. If the request is granted, the proposed import duties would apply globally, affecting foreign manufacturers like Brompton from the UK and performance bike brands such as Pinarello and Bianchi from Italy.
Similarly, Red Gold, a tomato-canning company sourcing from farms in Indiana, Ohio, and Michigan, highlighted its struggles with tariffs of 25% on tinplate steel from the UK and 50% on steel from other sources. The company argued that foreign competitors selling finished cans directly to the US face no comparable tariffs, allowing them to undercut domestic prices.
Additionally, kitchenware manufacturers American Pan and Chicago Metallic have raised concerns about low-cost cookware from China flooding the market. They describe the situation as an “unfair” advantage for Chinese products, further emphasizing the need for tariffs on these imports.
Concerns Over US Trade Policy
George Riddell, a senior adviser at the advisory firm Flint Global, commented on the growing fears among European businesses. He noted that the US appears to be adopting an “expansionist” approach toward its tariff list, with minimal rejections of requests in recent consultations. This trend raises questions about the stability of trade relationships with the UK and the EU despite existing agreements.
A decision regarding which products will be included in the new round of tariffs is expected to be announced in December, following the submission deadline. As companies await clarity on the potential impact of these tariffs, the global business community remains on high alert.
