Bush Raises Steel Money Before Tariff Decision

Reuters ^ | 12/2/03 | Randall Mikkelsen

[Tumbleweed_Connection]

PITTSBURGH (Reuters) - President Bush picked up $850,000 in campaign contributions in the heart of America's steel industry on Tuesday even as he prepared to lift tariffs that have been helping the steelmakers.

Supporters of the tariffs lodged a last-ditch effort to keep the protections in place. Bush heard arguments from Pennsylvania Republican Sen. Arlen Specter and U.S. Steel Corp. Chairman Tom Usher, a sponsor of the campaign fund-raiser which the Bush re-election campaign said had been planned long before the steel decision became imminent.

Scores of steelworkers demonstrated near the Pittsburgh site of Bush's event.

Administration officials said they still expected Bush to announce a decision this week to lift the tariffs, in place since March 2002 and which the World Trade Organization has ruled illegal. If he does not act the European Union has vowed to retaliate on $2.2 billion worth of U.S. exports. Thursday was shaping up as a possibility for making the announcement.

Despite the high stakes involved, Bush made no public mention of the steel issue during his visit to Pittsburgh, once known as "Steel City."

"The American economy is strong, and it is getting stronger," Bush said.

The White House said Bush was still undecided and was still listening to arguments.

The decision could have major implications for Bush's re-election campaign in steel producing and consuming states. Pennsylvania, which Bush lost to Democrat Al Gore in 2004, has 21 of the 270 electoral votes needed to win the presidency and has been a major focus of Bush's re-election strategy.

PROTESTERS BRAVE CHILLY AIR

Outside, protesters shouted "Don't cave in," and one carried a sign warning of the political stakes for Bush, especially in the major campaign battleground state of Pennsylvania. "Betray us now, lose in 2004," one sign read.

"We simply want him (Bush) to stand up for American workers," Leo Gerard, president of the United Steelworkers of America, said as steelworkers and others demonstrated in the chilly December air.

Tariff supporters were also inside the fund-raising event. Usher met privately with Bush to urge him to keep the tariffs in place for the three years he originally planned.

"President Bush said he understood our position, that it was a difficult and complex issue and he has not yet made a decision," John Armstrong, a spokesman for U.S. Steel, said. "Tom Usher remains hopeful that the president will keep his commitments to the steel industry."

Specter said he would discuss with Bush "a whole series of strong reasons" why the steel tariffs should stay.

Democratic Pennsylvania Gov. Ed Rendell released a Nov. 12 letter to Bush that urged him to keep the tariffs. He said since 2001, Pennsylvania alone has lost almost 3,000 manufacturing jobs "as a result of unfair trade practices."

AFL-CIO President John Sweeney, the leader of America's largest labor group, urged Bush in letter not to terminate the duties.

But U.S. steel importers and domestic steel consumers also kept up the pressure on Bush to end the tariffs, which they said have cost more jobs than they've saved.

Ending the steel tariffs 16 months ahead of schedule could spark a political backlash against Bush not only in Pennsylvania but also in the steel-producing states of Ohio and West Virginia.

Pittsburgh was long the center of the U.S. steel industry. Although Pennsylvania has lost its status as the largest steel-producing state, it still has the most United Steelworkers Union members, by virtue of 77,160 retirees.

Some lawmakers have said they suspected the president was delaying his announcement until after the Pennsylvania visit. (additional reporting by Doug Palmer in Washington and Michael Erman in New York)

[Poohbah]

Which is worse?

Raising money, and not delivering goodies?

Or running a pay-for-play op like the Clintons did?

[anniegetyourgun]

Misleading headline to be sure. He raised money, but it's only Reuters who would call it "steel money."

[Willie Green]

Misleading headline to be sure. He raised money, but it's only Reuters who would call it "steel money."

Here's a related thread to make you happy: Bush touts record in Pittsburgh speech

[Tumbleweed_Connection]

Raising money, and not delivering goodies?

What "goods" isn't Bush delivering?

[Poohbah]

The steel firms were undoubtedly hoping to keep the tarriffs in place. They didn't get that.

I actually kind of like the idea that the White House will do as they see best, and not as they see where the checks are coming from.

[mountaineer]

I'm shocked - shocked, I tell you - to see that the totally unbiased (cough cough) Reuters didn't mention the other protesters in Pittsburgh, to-wit, yours truly and friends. My post-freep report is here (post 97).

[Tumbleweed_Connection]

More jobs are being created every day. Economically we are very sound. Instead of supporting all of the growth, leftists promote discontent in areas which are dying. All of us here have made changes according to necessities. Again, it's evoke or die. The steel industry has long been part of their base and just like them, their base is dying.

[mountaineer]

Wheeling-Pittsburgh Steel is hiring, right now. Go figure!

[dirtydanusa]

Allegheny will probably lay more off before the month is over. This place is really top heavy but these aren't the jobs that will be cut. A bean counter, sitting at his desk, making six figures is more important than a hands on employee producing a quality product.

[anniegetyourgun]

He's gonna drop these tarriffs, which were a bad idea to begin with. (Payback's a b**ch for senators named Rockefeller.) As I've said before, it's tough to find a prez with which you agree 100% of the time on 100% of the issues.