US Steel Industry Says Bush Steel Tax Too Light

by Leroy Baker, Tax-News.com, New York

08 March 2002

Despite the international furore created by President Bush's decision to impose tariffs of between 8% and 30% on steel imports, the US steel industry has criticised the administration for not acting firmly enough on the issue.

The industry had called for 40% tariffs levied over four years across the board, and is unhappy with the President's decision to exempt countries such as Canada and Mexico from the import tariffs, and to levy lower taxes for a shorter period.

Speaking earlier this week, Jay McMurran, Legislative Director for the United Steelworkers of America, commented: 'We're appreciative Bush took the steps to set tariffs, but it's hard to tell if they will do any good with all the exceptions that are included.'

In making this move, President Bush appears to have managed to offend all parties equally, according to reports. On an international level, the European Union, Australia, Japan, and Korea have indicated that they will take the matter to the World Trade Organisation, and domestically, consumers face increased costs on steel products. The automotive industry has also expressed concerns that the tariffs, which are set to be introduced March 20, will lead to higher prices and less competition.

Recommended