WASHINGTON, DC — President George W. Bush decided to impose tariffs to protect the U.S. steel industry, applying 8% to 30% tariffs on various types of steel imported from Asia, Europe, and South America.

The action could drive up steel prices significantly, which would result in higher prices for cars and trucks, appliances including hvacr equipment, and housing. Those countries that would see the stiffest tariffs include China, Germany, Japan, South Korea, and Taiwan. Canada, Mexico, and developing countries are exempted. The steel tariffs are to be applied for three years to allow American steel makers to restructure.

European nations and Japan quickly announced their opposition to the tariffs and that they would likely mount a legal challenge with the World Trade Organization.

Publication date: 03/04/2002