International businesses are anxiously awaiting a U.S. government decision that could significantly broaden the array of imported products subject to new tariffs, intensifying concerns over rising trade costs and market access. Following a second round of public consultation that closed in October, the Department of Commerce is considering petitions to expand its list of “steel derivative” items facing additional levies, potentially encompassing hundreds of finished goods, from bicycles to commercial baking equipment. This move signals a possible escalation in the U.S.’s trade-enforcement strategy, directly impacting exporters in Europe and Asia who previously recalibrated trade agreements under previous administrations.
Manufacturers Petition for Expanded Duties
The Commerce Department’s review process, which seeks to identify products that contain steel and circumvent existing tariffs on raw steel, has galvanized U.S. manufacturers. Building upon an August roster of 407 already-targeted steel derivative items, industry stakeholders have requested the inclusion of approximately 700 additional products.
This expansion effort mirrors a precedent set during the initial implementation of these derivative tariffs, where trade experts noted a near 100% approval rate for item inclusion. Foreign suppliers now anticipate that most of the new proposals will be cleared and take effect by late 2025 or early 2026, forcing rapid adjustments to pricing and supply chains.
The domestic pressure for broadened protection is substantial, coming from diverse sectors. Submissions to Commerce include pleas from Indiana-based bicycle manufacturer Guardian Bikes, tomato canner Red Gold, truck wheel producers, and several U.S. bakeware firms like American Pan and Chicago Metallic.
Key Sectors Seeking Tariff Inclusion:
- Bicycle Industry: Guardian Bikes argued that massive imports, particularly from China, have weakened the domestic cycling industry, urging a global duty that could affect high-end European brands like Brompton, Pinarello, and Bianchi.
- Packaging Industry: Red Gold, which sources tinplate steel from the U.K. and elsewhere, highlighted that while they face tariffs on imported packaging materials, foreign competitors can ship finished tin-plated cans directly to the U.S. without commensurate duties, creating an uneven competitive field.
- Cookware: U.S. bakeware companies are seeking protection, claiming that commercial cookware from foreign sources is flooding the market at “unfairly low prices.”
European Concerns Over Trade Frameworks
European industry leaders are expressing profound unease over the potential double-impact of these derivative measures. While the European Union and the United Kingdom previously negotiated specific tariff bands with the U.S. concerning raw steel (the U.K. accepting a 25% steel tariff, the EU accepting bands up to 50%), exporters now warn the derivative approach risks “double charging.” This scenario involves applying a layered tariff—a higher rate specifically targeting the steel content—on top of the general tariff already assessed on the finished product.
George Riddell, a senior adviser at FlintGlobal, noted that Washington’s liberal approach to approving product inclusions indicates a persistent uncertainty in transatlantic trade relations, despite the framework agreements currently in place.
The implementation threatens to undercut carefully negotiated trade frameworks, validating European anxieties about a potentially expansionist U.S. tariff policy.
Upcoming Timeline and Implications
A final decision on which items will be added to the steel derivative list is anticipated in December, aligning with the 60-day review period following the October deadline.
This short window leaves exporters little time for critical operational adjustments, including renegotiating pricing, rerouting shipments, or establishing financial hedges against the new costs. The potential expansion of tariffs signifies a rising cost environment for both producers and consumers of steel-containing goods globally. Businesses are advised to urgently assess their supply chain exposure to these expanded tariff categories and prepare for potential market disruption in the new year.