ITC Recommends Duties and Quotas on Steel
December 13, 2001
The U.S. International Trade Commission has recommended the imposition of a
range of tariffs and quotas to offset steel imports the Commission had earlier
found to be unfairly subsidized by foreign governments. The tariffs suggested
for 16 steel product lines ranged from 5 percent to 40 percent, with most in the
range of 8 percent to 20 percent. Some commissioners also recommended quotas.
However, the U.S. steel industry had sought tariffs ranging from 30 percent to
50 percent and is unhappy with the recommendations. On December 19th,
the commissioners will formally present their recommendations to President Bush,
who must decide by mid-February whether to accept, alter or reject the remedies.
Foreign steel producers and companies that use foreign-made steel say tariffs
will raise prices on consumer products ranging from cars to appliances, and
could ignite a trade war that would make it harder to sell American steel
products abroad.