Bush scraps steel tariffs
The US President has decided to lift controversial tariffs against imported steel.
The announcement was made by a White House spokesman who read a statement from George Bush claiming ‘these safeguard measures have now achieved their purpose and, as a result of changed economic circumstances, it is time to lift them.’ The tariffs had originally been imposed to fulfil and election promise to the steel industry to project jobs, but in recent months other economic sectors in America, such as car makers, have been complaining that the tariffs have pushed their costs up.
The World Trade Organisation ruled last month that temporary duties of up to 30 per cent on foreign steel, imposed by Mr Bush in 2002, were illegal. Following that ruling the European Union and other countries warned America they would impose retaliatory sanctions if the tariffs were not removed.
The EU had decided upon a sharply focussed series of tariffs, on things such oranges from Florida and Harley Davidson bikes, which were intended to embarrass the President politically.
The decision had been widely expected following a much trailed speech by Mr Bush, in which he stated: ‘The decision I make will be based upon my strong belief that America’s consumers, the American economy, is better off with a world that trades freely and a world that trades fairly.’
‘I acted to give the steel industry time to adjust. I acted in time for us to say to the world that we will trade but we want to trade in a fair way.’
