U'S' Steel Tariff

1
U.S. Steel Tariff
2
Backround

• Low steel prices
• Steel industries have gone bankrupt

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Bush annouces steel tariff

• On Wednesday March 6, President Bush imposed
  tariffs as high as 30
• Example Hot-rolled bar
• Year 1 30 tariff
• Year 2 24 tariff
• Year 3 18 tariff

4
Why is this legal?

• Section 201 of the U.S. trade law acts as an
  escape clause

5
Reasons for tariff

• The tariff is used to protect the U.S. steel
  producers.
• A healthy steel industry is important in a war.

6
Problems with the Tariff

• U.S. has a history of getting aid from the
  government
• The tariff would hurt other countries that rely
  on importing steel to U.S.
• Also the steel tariff hurts U.S. image of a free
  trade country.
• The U.S. tariff causes other countries to put up
  their own safeguard tariffs.

7
More Problems

• Increasing prices for U.S. steel consumers as a
  result of the tariff, hurt other industries just
  as much as it helps steel producing industries.
• Steel industry vs having another industry in war
  time
• Bush just did it to get votes