Bush backs tariffs

President Bush has imposed tariffs ranging from 8% to 30% on steel imports into the USA. The tariffs will go into effect on 20 March 2002 and last for three years. The tariffs, which are 10% lower than what the industry demanded, exclude members of the North American Free Trade Agreement, including Canada and Mexico, and developing nations, which export a minuscule amount of steel, Robert Zoellick, the US trade representative, has said.
Imports for steel slabs will fall under a tariff rate quota (TRQ), whereby 5.4 million tons can be imported without additional tariff every year. The quota will be country-specific and the lion’s share will go to Brazil, with 52%. The quota will be increased by 500,000 tons per year for each of the following two years.
The following tariffs were instituted: flat-rolled, tin mill products, and hot-rolled and cold-finished bars: 30% first year (decreasing by 6% for each of the following two years); rebars, welded tubular products, stainless bars, stainless rods: 15% first year (decreasing by 3% for each of the following two years); fittings and flanges: 13% the first year (decreasing in the following two years); stainless wire: 8% the first year (decreasing by 1% for each of the following two years). There will be no relief for tool steel and stainless flanges.
Steel imports from Canada, Mexico, Israel and Jordan are excluded. Imports from developing countries are excluded under certain conditions. These countries include Argentina, South Africa, Thailand and Turkey.
The US administration faces strong opposition to tariffs from both trading partners and major steel users, such as auto and appliance makers. British Trade Secretary Patricia Hewitt said Britain would support trade retaliation by the European Union if the USA imposes tariffs, and European Commission President Romano Prodi has written to Bush “expressing serious concerns about the situation.”

Previous articleHyundai wins Nigerian oil project
Next articleZamzama gas field development
Stainless Steel World is part of The KCI Media Group, a group of companies focused on building and sustaining global communities in the flow control industries. We publish news on a daily basis and connect business-to-business professionals through our online communities, publications, conferences and exhibitions.