US may slap upto 30% tariff on steel imports

<div class="section1"><div class="Normal">washington: the bush administration is expected to impose tariff upto 30 per cent on imported steel to protect the domestic industry which is in distress. president george w bush, who endorsed the tariff plan, may make the announcement soon as wednesday deadline looms. under the plan, canada and mexico would be exempted from the duties as would imports from argentina, thailand and turkey, the <span style="" font-style:="" italic="">washington post</span> reported on tuesday.steel tariffs, recommended by the us international trade commission, the commerce department and congress, are highly controversial internationally as the us tries to justify it in the name of free trade. retaliation may come from the affected countries. the us'' credibility as a free trader may also be questioned and there is the possibility that some of the countries will take up the issue with the world trade organization for adjudication, the report said. the cabinet and white house advisors were split on the issue, says the <span style="" font-style:="" italic="">post</span>. senior advisor karl rove and commerce secretary donald evans push for higher tariffs while bush''s chief economic advisor lawrence lindsey and treasury secretary paul o''neill oppose high tariffs especially at a time when the administration is also trying to reduce an opec-like cartel for steel to match its production with consumption needs. the "compromise" was brokered, the post said, by chief of staff andrew card and deputy chief of staff joshua bolten. proponents of 40 per cent tariffs argue that falling steel prices and rising imports have left only a few us steel producers still making profits. they note that 31 steel companies have filed for bankruptcy protection in the last four years. </div> </div>