Bush imposes tariffs to help ailing U.S. industry

WASHINGTON -- President Bush on Tuesday slapped punishing tariffs of eight to 30 percent on several types of imported steel in an effort to aid the ailing U.S. industry, drawing criticism from American allies and mixed reviews in Congress.\n"An integral part of our commitment to free trade is our commitment to enforcing trade laws to make sure that America's industries and workers compete on a level playing field," Bush said in a statement issued by the White House.\nThe tariffs will undoubtedly be passed on to consumers, but the administration did not estimate by how much. "Guessing prices is not my business," U.S. Trade Representative Robert Zoellick told reporters at the White House. He has previously called for tariffs tax increases, a position embraced by many Republicans.\nCritics say increased tariffs will raise prices on items including cars, houses and appliances. One critical study suggested the average family of four would spend up to $283 more a year.\nBush urged U.S. steel companies to take advantage of the "temporary safeguards" and restructure their industry. The tariffs-and-quota plan, which takes effect March 20, can be amended by Bush if the industry's financial crisis worsens or eases in the next three years.\nThe action, while short of the 40 percent tariffs sought by companies, was generally applauded by industry.\nHouse Minority Leader Dick Gephardt, D-Mo., accused the president of not going far enough to help the industry and steelworker unions. "The situation remains dire," he said.\nHowever, Senate Majority Leader Tom Daschle, D-S.D., called it a good move that balances the concerns of competing interests.\nThe long-awaited decision was described by advisers and lawmakers who were briefed as a compromise approach, one designed to protect the U.S. industry while minimizing backlash from overseas and from U.S. manufacturers that rely on cheap steel.\nThe plan exempts several U.S. trading partners -- including Canada, Mexico and a handful of impoverished nations. It does not embrace an industry-sought $10 billion bailout of pension and health care costs for retired workers from bankrupt companies.\nMore than 30 steel makers have declared bankruptcy in recent years and the price of basic steel has fallen dramatically. How to protect the industry without hurting the economy with steep price increases is a question that could sway congressional races in November, and even affect Bush's prospects for re-election in 2004.\n"I take this action to give our domestic steel industry an opportunity to adjust to surges in foreign imports, recognizing the harm from 50 years of foreign government intervention in the global steel market," Bush said, offering laid-off steelworkers a modest amount of help for job training and health insurance costs.\nSteel industry lobbyists pushed for the highest possible tariff on slab steel, produced largely overseas and used by smaller West Coast manufacturers. Those U.S. companies wanted to keep the steel cheep. Bush's split-the-difference approach calls for tariffs but only after a certain amount of the product is imported.\nThe industry had hoped that Bush would set a low quota, allowing for a quick kick-in of tariffs. It was not immediately clear how Bush's quota of 5.2 million short tons compares to current import levels.