Bush to impose steel tariffs of 20 percent to 30 percent on help ailing steel industry

Mpls (red)Star Tribune / AP ^ | 3/5/02 | Ron Fournier

[Valin]

WASHINGTON -- President Bush will impose tariffs of up to 30 percent on steel imports in a bid to aid the ailing U.S. steel industry, White House officials said Tuesday of a move certain to draw opposition from American allies.

[mountaineer]

Any reaction from WS folk?

[Thane_Banquo]

Bad news. When you oppose tariffs, it is an economic fact that you lose efficiency, and domestic consumers (in this case other businesses) lose income that could be used towards investment in other areas.

[Thane_Banquo]

That should read "impose tarrifs."

[hoot2]

"Bush to impose steel tariffs of 20 percent to 30 percent on help ailing steel industry "

oh no, how unfair...
what about "nafta"?
"gatt"?

[Valin]

"impose tarrifs."

That makes a lot more sense.

[Valin]

What about them?

[Valin]

They said two of America's biggest trading partners, Canada and Mexico, would be exempt from the product-by-product tariff changes.

Re NAFTA.

[hoot2]

"When you oppose tariffs"

you were right the first time....DUMPING...

[elfman2]

Much of steel industry is a mess. We have many smaller facilities that are modern and extremely competitive, and we have lots of larger older uncompetitive facilities that should be allowed to fail. The average wage I'm told in these places is $38 per hour. There's no incentive for management to retool. There are estimates (maybe by Cato) that tariffs will cost more jobs across America than they will save in the steel industry.

But in this political environment, tariffs are inevitable. Ohio and Pennsylvania are both big steel and big swing states. I would take an agreement between Democrats and Republicans to end steel subsidies or the one who removes them will pay a big political price.

This doesn't mean that Bush has abandoned smaller government principles (although I'm sure a few will disagree). It means that he's pursuing a policy of smaller government where possible, and has chosen not to spend his political advantage in on this.

Better ideas than tariffs have been proposed such as allowing tax credits for modernization, but they probably don't translate as well in the polls.

[Cosmo]

t Walter Williams was talking about last week. Paraphrased, it went something like this: Bankruptcies are good as they mean that resources will be naturally reallocated elsewhere, where they will be put to better use than before. So instead of bailing out players in the markets, let other players come in and try their hand at doing a better, more efficient job.

[logician2u]

You could say that because of NAFTA, Bush's proposed tariff also protects Mexico's and Canada's steel industry.

Either way, it's a dumb move to raise tariffs in a recession, inviting retaliation from exporting nations.

But then even the hallowed R. Reagan tripped over the free-trade threshold once or twice. Harley-Davidson was one of the domestic beneficiaries, its riders the losers.

[IncPen]

Either way, it's a dumb move to raise tariffs in a recession, inviting retaliation from exporting nations.

The unions and the steel companies together are calling for tariffs. I say give it to them. It will hasten their demise and make way for cheaper, better steel.

When the current steel industry in the US finally dies its overdue death, the greedy unions and greedy managers will have reaped the fruits of 100 years of shortsightedness and malfeasance. Someone else will step up and do it cheaper and better.

It's a wonder it took this long.

[Valin]

Bush's political team, led by Karl Rove, pushed for high tariffs to court favor with union members and voters in the industrialized Midwest.

IMO this is what it's all about. The steel workers union have been really pushing this lately.

[doc30]

And when the tariffs are imposed, we will be stuck paying more for domestically produced products. Look for steel-made finished goods to be cheaper than their American counterparts.

[Valin]

You could say that because of NAFTA, Bush's proposed tariff also protects Mexico's and Canada's steel industry.

That is part of the reason behind NAFTA.

[Valin]

And when the tariffs are imposed, we will be stuck paying more for domestically produced products. Look for steel-made finished goods to be cheaper than their American counterparts.

I don't understand what you're saying? IE. the 1st sentence and the second sentence.

No flame.

[HamiltonJay]

I support this move, in fact I would not have made the exceptions that Bush made, and probably would have made it higher, and NO I don't work for, or with the Steel Workers and I am not part of any union.

The wholesale dumping of steel by other nations on the US, has to end. These nations are supsidizing their steel industry to keep people employed, then dumping the steel on the US at less than cost.. this is undermining a product and industry that is absolutely essential for national security. Dumping cannot be tolerated by any industry... I know I will take heat here, because for some reason "free trade" has somehow become senonymous with conservatism over the last few years.. althought it is not a requirement for it, and is a horribly bad blanket policy for any nation to have.

[Cacophonous]

When you [im]pose tariffs, it is an economic fact that you lose efficiency, and domestic consumers (in this case other businesses) lose income that could be used towards investment in other areas.

Could you cite some economic facts that support this claim?

And is it the interests of the consumer we should be pursuing, or the economic viability of American industries?

[hchutch]

I agree in terms of ending the dumping. This is a national security issue, IMHO. I do not want to depend on foreign steel to build the warships, tanks, and planes our troops will be counting on.

We need to stop the dumping, ASAP. Combine the tariff with a modernization tax credit. Take things from there.