It also followed a lobbying campaign by domestic consumers of steel, many of them manufacturers in Midwestern states also vital to Mr. Bush's political fortunes, asserting that higher steel prices were hurting the economy more than the tariffs were helping steel makers.
In imposing tariffs today on much of the steel imported into the United States, President Bush was gambling that he could help domestic steel makers without endangering the economic recovery.
Dan DiMicco, the chief executive of the Nucor steel company, recently wrote to several senators saying he considered the special waivers to be an unfair subsidy that would help rival steel makers at his company's expense.
The industry has asked for tariffs on many steel products of up to 50percentt, saying that the resulting higher sales at higher prices would help American steel makers generate more than $10 billion in industry profits that could be used to put them on firmer financial footing.
He said it might make more economic sense to give direct aid to steel makers to help them lay off workers or pay benefits than to impose the tariffs.
Some administration supporters say privately that Mr. Bush and his top aides view help for the steel makers as one way of persuading members of Congress to support their trade proposal.
And all for nothing: tariffs are unlikely to help most American steel makers, the more competitive of which are doing quite well without them, and meanwhile the far more numerous steel users are suffering.In this section How sick is Europe?
The tariffs had the intended effect of helping ailing U.S. steel makers restructure their industry and scored points with steelworkers in political swing states such as Pennsylvania, Ohio and West Virginia.
That will help the 15 American steel makers operating under the protection of the bankruptcy courts (increased to 16 this week by the inclusion of Indiana-based National Steel).
