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Posted on 03/05/2002 6:53:24 AM PST by KayEyeDoubleDee
WASHINGTON (Reuters) - President Bush was expected to announce on Tuesday that the United States will impose tariffs of up to 30 percent on most imported steel, sources said, in a decision bound to anger major U.S. trading partners in Europe and Asia and possibly spark retaliation.
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U.S. steel firms and steelworkers have asked for a 40 percent across-the-board tariff for four years on a broad range of steel imports. They blame low-priced imports for 31 bankruptcies since 1997 and are seeking temporary "safeguard" protection under "Section 201" of U.S. trade law.
Administration and congressional sources said the president would impose tariffs of up to 30 percent on many categories of imported steel from Japan, South Korea, Brazil, Russia and Ukraine. Canada and Mexico, partners with the United States in the North American Free Trade Agreement, and several developing nations would be exempt from the tariffs, the sources said.
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how do you feel about the Bush administration's shameless decision to go back on everything they've said about being free marketeers and impose punitive tariffs on imported steel? What does the WSJ say about that? I hope they are reaming him. Obviously, any illusions that Bush makes decisions based on what is right or wrong for America rather than his own short-term political advantage is now exposed as such.
further proof that a narrow but well-funded special interest group can get their way even if it has severe negative consequences for all americans. the steel industry money was not used for freedom of speach (have you seen many ads for or against tariffs on imported steel?). Instead the money was used to influence decision-making at the highest levels. I suppose the Bush folks assume the average amercian is too stupid or ignorant to understand what they have just done (I hope they are wrong).
| EU Says It Will React to U.S. Steel Tariff Hikes | |
| Last Updated: March 05, 2002 06:38 AM ET --> |
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| BRUSSELS (Reuters) - The European Union said on Tuesday it would react if the United States imposes tariffs on steel imports. "(European Commission) President Prodi has written to the U.S. president...expressing serious concerns about the situation, pointing out that if the U.S. administration takes measures against imports, particularly if it imposes tariffs on imports, the European Union will have no choice but to react," Commission spokesman Jonathan Faull told a news briefing. The Washington Post reported that President Bush, facing a Wednesday deadline, had decided to impose tariffs of up to 30 percent on steel imports to help the financially struggling U.S. steel industry rebuild. Faull said the Commission, the executive arm of the European Union, had not had confirmation of the report and expressed hope that Washington would not impose tariffs. "There is absolutely no doubt that any measures which restrict trade will have an impact on our relations with the United States," Faull said, adding that the EU hoped to avoid confrontation with Washington on the issue. "It's in our interests, it's in the Americans' interests and it's in the interests of the world as a whole that EU-U.S. trade friction should be kept to a minimum. We are not seeking confrontation," the spokesman said. |
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Yet another tick mark in the "not really a Conservative" check sheet against Bush. Though I'm sure the cheerleaders will call this a "bold strategy" or whatever other kind of bilge they're spouting these days to hide the fact that their boy is a closet big government Fabian socialist.
[flame suit on!]
There are only two options. Either make it so that the US companies can build plants here that can compete with the foreign plants or apply tariffs.
One generates revenue for the government and the other doesn't. Which did you really think they'd do?
And W doesn't have the nuts to change this. This is one issue that he should be preaching from the bully pulpit (in the same breath as a call for drilling in ANWR)
It's a step in the right direction, but still inadequate.
The ideal solution is a relatively low, across-the-board revenue tariff of 10-20% on ALL imported goods from ALL foreign countries.
"Targeted" tariffs have the disadvantage of providing loopholes and, as others will be quick to point out, the potential to hurt other domestic industries.
A prime example is our failed embargo on the importation of Cuban goods. Cuban sugar has been routinely imported to the U.S. through the back door: Canada. Cuban sugar is shipped to Canada where it is dissolved in molasass. "Canadian" molasass is then legally imported to the U.S. where the sugar is easily refined back out. The leftover molasass is then exported back to Canada where the cycle is repeated. Large sugar-users (such as candy makers) are also closing their domestic factories and moving to Canada where they can legally use Cuban sugar, then import it as candy to the U.S.
An across-the-board revenue tariff of 10-20% would circumvent this type of abuse. Additionally, the revenue could be used to offset a major reduction or elimination of the corporate income tax, providing domestic producers a more "level playing field". (A Proposal to Abolish the Corporate Income Tax)
From a historical perspective, a revenue tariff of 10-20% is NOT excessive:
unless here it is somehow more reliable
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