President Bush's decision to impose tariffs on steel imports 'will hurt steel consumers and won't solve the problems of weak, mismanaged steel companies in the United States,' said David Phelps, president of American Institute for International Steel (AIIS).
'It is American companies and workers who are going to pay the price for this remedy,' said Phelps in a AIIS statement. 'President Bush has placed a tax on American manufacturers who rely on high-quality steel they cannot obtain in the United States. These 201 tariffs will only raise the price of steel for U.S. manufacturers, while their global competitors will be paying international market prices. As three separate studies have shown, the result will be job losses by U.S. steel consuming industries who will need to move their facilities offshore to compete with their global competitors.'
'Further, we are concerned that major U.S. trading allies will close their steel markets in response, creating more protectionist pressure on international markets, and that retaliation against U.S. exports of agricultural and other products will spread in an escalating trade war,' added Phelps.
For more information, visit www.aiis.org .