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Old 03-06-2002, 06:45 AM  
mika
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Join Date: Sep 2001
Location: Finland
Posts: 1,561
Food for thought:

Will the move backfire on other US industries by making steel more expensive?

Many American steel using companies industries are opposed to the tariffs. The lobby group, Consuming Industries Trade Action Coalition, says the tariffs will cost more jobs in industries that use steel than they will save.

They say that for example many car parts now made in the US will be made abroad.

The steel producers reject this. The American Iron and Steel Institute says the effect on consumers prices will be minimal and there will be no meaningful employment costs for steel using industries.

What are the domestic political calculations behind President Bush's move?

There are elections for the House of Representatives in November this year. The House is finely balanced and steel-producing areas such as Ohio and Pennsylvania could determine whether the Republicans retain control of the House.

It might also be an important issue in the Presidential election in 2004.

George W Bush came to power after promising to help the steel industry. He narrowly won the election of 2000, after winning two states, Ohio and West Virginia, where the steel industry has a large presence.
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