Bush Lifts Tariffs on Foreign Steel

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resident Bush lifted 20-month-old tariffs on foreign steel on Thursday, but said the administration would maintain a program to guard against a sudden flood of cheap foreign steel coming into the country, news services reported.

Following Bush's announcement, the 15-nation European Union said it was lifting its threat of sanctions on $2.2 billion of U.S. products.

EU Trade Commissioner Pascal Lamy said European steel exports to the United States, which total roughly $2.4 billion a year, were reduced about 15% because of the tariffs, Reuters reported.

In March 2002, Bush levied tariffs of up to 30% as part of a three-year plan to help the domestic steel industry. But the tariffs were ruled illegal by the World Trade Organization last month, saying the United States failed to prove that its steel industry had been harmed.

In his announcement, Bush said the tariffs had enabled U.S. steel companies to compete both at home and globally, the Associated Press reported. Also Thursday, U.S. Trade Representative Robert Zoellick said the situation facing the U.S. steel industry has improved greatly because of the tariffs, AP said.

Bush also said he was continuing early reporting requirements that had been imposed when the tariffs were levied in 2002 to detect any big influx of steel into the United States, Reuters said. This program requires steel importers to apply for import licenses, giving the government a quick way to detect possible import surges.

However, steel-producing states including West Virginia, Ohio and Pennsylvania will now face greater foreign competition. These states could be critical in next year's presidential election, AP said.

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