nat4900
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Trump Wants to Impose Steel Tariffs. It Didn't Work for Bush
The U.S. steel industry has long awaited the move from Trump, but trade policy experts warn the tariff could do more harm than good. And they only need to point to a tariff imposed by President George W. Bush in 2002 to show why.
But the imposition of tariffs set off a chain reaction. The European Union responded with tariffs of its own and a number of countries disputed the tariffs at the World Trade Organization. Less than a year after the announced tariffs, the WTO ultimately ruled that the U.S. had violated international trade agreements by imposing the tariffs, opening the door for sanctions and retaliation.
And, in fact, the European Union ended up hitting Bush where it hurt. The bloc planned tariffs on a wide range of products, including many produced in key swing states where job losses could hurt Bush’s chances of re-election. In late 2003, Bush reversed the sanctions in a move that would be branded as a flip flop.
Trump is setting himself for a similar confrontation. Other countries have already suggested that they may retaliate if Trump goes through with the tariffs. Among the potential targets are Harley Davidson motorcycles, made in Speaker of the House Paul Ryan’s backyard, and bourbon made in Senate Majority Leader Mitch McConnell’s home state. (Many Republicans on Capitol Hill have already spoken out against the tariffs).
Mr. Bush's action is likely to send the price of steel up sharply, perhaps as much as 10 percent, a cost American consumers will ultimately bear in higher prices for autos, appliances and housing. The United States imports about a quarter of the steel it consumes, though Mr. Bush exempted steel made in Mexico, Canada and developing nations from the tariffs announced today. The nations hardest hit are Japan, South Korea, China, Taiwan, Germany and Brazil.
Trump Wants to Impose Steel Tariffs. It Didn't Work for Bush
The U.S. steel industry has long awaited the move from Trump, but trade policy experts warn the tariff could do more harm than good. And they only need to point to a tariff imposed by President George W. Bush in 2002 to show why.
But the imposition of tariffs set off a chain reaction. The European Union responded with tariffs of its own and a number of countries disputed the tariffs at the World Trade Organization. Less than a year after the announced tariffs, the WTO ultimately ruled that the U.S. had violated international trade agreements by imposing the tariffs, opening the door for sanctions and retaliation.
And, in fact, the European Union ended up hitting Bush where it hurt. The bloc planned tariffs on a wide range of products, including many produced in key swing states where job losses could hurt Bush’s chances of re-election. In late 2003, Bush reversed the sanctions in a move that would be branded as a flip flop.
Trump is setting himself for a similar confrontation. Other countries have already suggested that they may retaliate if Trump goes through with the tariffs. Among the potential targets are Harley Davidson motorcycles, made in Speaker of the House Paul Ryan’s backyard, and bourbon made in Senate Majority Leader Mitch McConnell’s home state. (Many Republicans on Capitol Hill have already spoken out against the tariffs).
Mr. Bush's action is likely to send the price of steel up sharply, perhaps as much as 10 percent, a cost American consumers will ultimately bear in higher prices for autos, appliances and housing. The United States imports about a quarter of the steel it consumes, though Mr. Bush exempted steel made in Mexico, Canada and developing nations from the tariffs announced today. The nations hardest hit are Japan, South Korea, China, Taiwan, Germany and Brazil.
Trump Wants to Impose Steel Tariffs. It Didn't Work for Bush