Bush imposes steel tariffs

Move expected to increase prices on several products

? President Bush on Tuesday slapped punishing tariffs of 8 percent to 30 percent on several types of imported steel in an effort to aid the ailing U.S. industry, drawing criticism from American allies and mixed reviews in Congress.

“An integral part of our commitment to free trade is our commitment to enforcing trade laws to make sure that America’s industries and workers compete on a level playing field,” Bush said in a statement issued by the White House.

The tariffs will undoubtedly be passed on to consumers, but the administration did not estimate by how much.

“Guessing prices is not my business,” U.S. Trade Representative Robert Zoellick said. He has previously called tariffs tax increases, a position embraced by many Republicans.

Critics say increased tariffs will raise prices on items including cars, houses and appliances. One critical study suggested the average family of four would spend up to $283 more a year.

Bush urged U.S. steel companies to take advantage of the “temporary safeguards” and restructure their industry. The tariffs-and-quota plan, which takes effect March 20, can be amended by Bush if the industry’s financial crisis worsens or eases in the next three years.

The action, while short of the 40 percent tariffs sought by companies, was generally applauded by industry.

The long-awaited decision was described by advisers and lawmakers who were briefed as a compromise approach, one designed to protect the U.S. industry while minimizing backlash from overseas and from U.S. manufacturers that rely on cheap steel.

The plan exempts several U.S. trading partners including Canada, Mexico and a handful of impoverished nations.

Nations hit hardest by the tariffs include China, Japan, South Korea, Ukraine and Russia. The European Union cautioned that relations with the United States would suffer under such a tariff decision and hinted at possible trade retaliation against American products.