US considering extra tariffs on goods that contain steel

Businesses are steeling themselves for another round of Donald Trump's tariffs, this time on goods ranging from bicycles to baking trays, after US industry embraced a call for more products to tax on import.

- Lisa O'Carroll

Companies have asked the US Department of Commerce to add about 700 more items to an August list of 407 products already facing extra tariffs because of their steel content. The levy has hit items ranging from Ikea tables with metal nuts and bolts to German combine harvesters.

Alarm bells are ringing across Europe where industry leaders are fearful of a rolling and growing list of “steel derivatives” that will now face import levies.

Manufacturers had reconciled themselves to higher border taxes under trade frameworks struck with Trump. The UK's deal included a baseline tariff on all goods of 10% and 25% for steel, while the EU agreed rates of 25% and 50% respectively.

Exporters say the new derivative tariffs make a mockery of these agreements, because they mean many goods could soon be eligible for the higher rate on their steel content - on top of the baseline rate on the cost of the whole item.