Bush Dropping Steel Tariffs to Avert Trade War

In response to a WTO ruling that was finalized three weeks ago, the Bush administration has indicated they are likely to drop the 8-30% steel tariffs imposed in 2002. The US faces a trade war with the European Union and Japan if it keeps the tariffs, which target imports from these nations as well as from South America. EU countries are threatening tariffs on products like Florida citrus fruits and textiles. Domestic political reasons have kept the Bush administration from dropping the tariffs, as key states for next year's presidential elections are dependent on steel production. However, other conflicting political reasons may have influenced its change in policy. Other key states like Michigan are dependent on cheaper foreign steel for the car industry. Moreover, Florida could be another key election state and would be seriously harmed by tariffs against its citrus industry. – YaleGlobal