Bush May Be Leaning Toward Lifting Steel Tariffs

[Spazito]

WASHINGTON (Reuters) - Under pressure from many of his top advisers to lift tariffs on steel imports, President Bush (news - web sites) may be moving in that direction to avert a trade war with Europe, Republican sources and analysts said on Tuesday.


That could spark a political backlash from steel makers and workers in next year's presidential election.


The White House said no decisions have been made and officials have not publicly ruled out the possibility that the administration could flout the World Trade Organization (news - web sites) by keeping the tariffs in place.

<snip>

Republican sources and analysts say the administration appears to be leaning toward removing -- or at a minimum scaling back -- protections for U.S. steelmakers for a host of reasons, not the least of which is the EU's threat to retaliate on $2.2 billion of American exports.

http://story.news.yahoo.com/news?tmpl=story&u=/nm/20031112/pl_nm/trade_steel_bush_dc

[Mistress Quickly]

1. Good

It needs to be lifted.

[Atman]

2. But I thought he was a man of principle?

I thought he stuck to his guns, acted based upon what he feels is the right thing to do, not based on political pressure.

Oh, that's right...he's really just a pathetic liar.

[E_Zapata]

3. Oh, he will make it up to the Steel Manufacturer OWNERS.......

Oh yes he will. A very special tax cut. Or, maybe he will level another foreign country and force all rebuilding contracts to use US steel? Something sweet.

Now.......how to appease the 'workers'.....I guess Bush can get the Management to get their people to vote just right......

[0007]

4. John Snow will stand by junior's side for the photo opps.....

and the press will treat junior like a hero at the press conference where junior will boastfully declare that the right thing had to be done.....and three hundred paid shills will cheer wildly non-stop for ten minutes.

It was Clinton's fault.

[ze_dscherman]

5. Not really!

They are just changing the way it is done, to work around WTO regulations.

US considers severe new steel penalties
By Edward Alden in Washington
Published: November 11 2003 21:59 | Last Updated: November 11 2003 21:59


The US is considering a radical change to its laws on unfair trade that would severely penalise importers even if Washington bows to the World Trade Organisation's demands that it remove tariffs on foreign steel

The complex methodological change would sharply raise the duties on steel imports that are also subject to separate anti-dumping tariffs.

The Commerce department, under pressure from the steel industry as well as lumber producers - who would also benefit significantly - gave notice in September that it is considering the change.




Source: http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1066565804511&p=1012571727102

[Spazito]

6. Ahhh, but if they do that, they run into NAFTA as well as WTO problems

because to change the laws on which the agreements have been signed might just mean that other countries will do the same unilaterally.

[Tommy_Douglas]

7. Its no surprise...

Free trade is great for Americans when they win and not so great when they lose.

American's signed Free Trade with Canada because some believe the U.S. Juggernaut would crush the Canadian market. Only problem is in lumber, steel, and agriculture the Canadians held their own and then some. Ridiculous tariffs and red tape were quick to follow.

[Spazito]

9. Agreed! I almost hope they do try and change the rules...

there is lots within NAFTA I sure would like to see changed if not scrapped entirely. Fair Trade is the goal, imo.

[newyawker99]

19. Hi Tommy_Douglas!!

Welcome to DU!! :toast:

[Cocoa]

8. I'm sure his decision will be based on sound economic principles

He's consulting with the best academic minds to do what's best for the country.

[Bandit]

10. I have something for you to use in future posts when necessary

Your post definitely needs it.

[Cocoa]

14. thanks

Saved the image location, a lot of my posts need it. Maybe I should make it my sig line. :-)

[underpants]

11. HA! No he has to triangulate this (he will lose votes either way)

He is trying to use this to create revenue (they are a bit short right now) but he either is going to lose votes in PA, OHio, WV, Mich if he goes back on the tarriffs or he loses Manufacturing votes in the Mid west and .................... citrus growers and those tied to that little industry in Florida. Oops.

Bush could face a backlash whatever the decision.

If he bows to pressure from the European Union to lift the tariffs, he stands to lose support in the pivotal steel-producing states of Michigan, Ohio, Pennsylvania and West Virginia.

Keeping them in place would hurt small- and medium-sized Midwestern manufacturers -- another important constituency -- and clear the way for the EU to retaliate against exports from key states.

[Spazito]

12. Yep, this is a perfect example of being between a rock and a hard place

which seems to be becoming a practice with Bush.

[underpants]

13. PA, OH, WV, Mich=67 Electoral college votes Fla=25 +????

whatever midwestern manufacturing states are involved

[Cocoa]

16. the politics are extremely confusing to me

I guess that's what happens when the policy is so devoid of principle.

[underpants]

17. It wouldn't be if he had stuck with his "free trade" policy

Yet another campaign promise reversed. Like I said above they were using this as a revenue generator and it not only backfired with the EU (they smell weakness) but W put himself in a very tight spot the resolution of which will not make everyone happy. Tougth t*t numbnuts.

[Maeve]

15. Even a blind pig can find an acorn now and then

Not that he'll admit he was wrong...

[davsand]

18. Yeah, screw the workers some more! See how far THAT goes...

Gawd, what is it gonna take to make him pull his head outta his backside? The US has been dropping the capacity to produce steel for a while now--and dropping that tariff may well close some more plants here in the US.

When that happens, the US is going to be left with its ass hanging out down the road when we need steel and can't get it. In the meantime, more skilled US jobs will be lost and never be seen again. Oh--and did I neglect to mention the people left jobless without health insurance and any way to make house payments when those plants close up? Not to mention the lost property tax revenue on those closed up plants and depressed housing markets?

Screw NAFTA and screw the concept of free trade. If it means sending jobs out of country and leaving our folks hungry and cold we don't need to be doing it. When will they wake up and realize how dangeroust this whole game is?

Laura

[NewYorkerfromMass]

20. In the long run it will help

no need to freak.

[BlackFrancis]

21. help who?

It's damn sure not going to help those steelworkers long term.

[The_Casual_Observer]

22. Another failure courtesy of the king of failure.

Just leave it to Bush to turn a difficult problem, that to solve, would require wisdom, reasoned judgement and skilled diplomacy, into a paint-yourself-into-a-corner lose-lose screwed up mess.

[goforit]

23. This guy has deserved the hotseat he has placed himself in!!!

DUH!!!!

NO Trade war vs. low polls.........

Hmmmmm..........with all the GOP rigged voting, who needs polls?