Bush Weighs Raising Steel Tariffs but Exempting Most Poor Nations

The American steel industry, once booming, is now on the verge of failure. Unions and major steel companies are calling on President Bush to save steel jobs by imposing high tariffs on all steel imports. Bush faces a sticky political situation. Tariffs – which contradict the free trade principles that Bush advocates – would likely alienate international allies in Europe and Asia that Bush needs in his anti-terrorism campaign. Similarly, American businesses like the auto industry that depend on cheap steel for production strongly oppose the tariffs. Bush must weigh the benefits of saving steel jobs against the costs to the America’s economy and foreign policy. – YaleGlobal