To: calgal who wrote (502572 ) 12/2/2003 11:32:12 PM From: calgal Read Replies (1) | Respond to of 769667 Bush raises campaign cash, maintains silence on steel tariffs By James Cox, USA TODAY PITTSBURGH — President Bush raised $850,000 for his campaign at a Pittsburgh fundraiser Tuesday, but he left the Steel City without saying whether he would keep or end tariffs he imposed to protect U.S. steel producers. Bush made no mention of the tariffs on foreign-made steel at the event, which was co-hosted by Thomas Usher, CEO of U.S. Steel, the country's largest steelmaker. The president boasted that the U.S. economy "is getting stronger and stronger." He cited improvements in productivity, business investment and housing construction. He also said the United States would not give in to "a bunch of thugs and assassins" in Iraq. Some of Bush's advisers are pressing him to scrap tariffs he put in place in March 2002 to shield the troubled U.S. steel industry from foreign competition while it restructured. He is expected to act this week. The tariffs have been ruled illegal by the World Trade Organization. The 15-nation European Union, Japan and other countries have threatened to retaliate with punitive duties on American products — citrus, rice, clothing and others — unless the steel tariffs are lifted by Dec. 15. Usher, who has urged Bush not to give in to "blackmail" by the EU, spoke briefly with Bush before the president's speech. Bush told the steel executive he had made no decision, White House spokesman Scott McClellan said. Even so, "the administration has clearly signaled they're going to drop the tariffs," said Claude Barfield, trade expert at the American Enterprise Institute, a Washington think tank. About 300 steelworkers and other protesters marched outside in snow flurries as Bush spoke. "Betray us now, lose in 2004," one sign read. Bush imposed tariffs of 8% to 30% on steel imports in response to more than three dozen Chapter 11 bankruptcy filings by domestic steel companies. The duties, intended to last until March 2005, were to give the industry time to consolidate, close old mills and regain its competitiveness. Protection for the steel industry also was thought to boost Bush's re-election chances in steel-producing electoral battlegrounds such as Pennsylvania, West Virginia and Ohio. Since the tariffs were imposed, several steel companies have merged or been acquired by bigger producers. At least four large mills have been shuttered. The United Steelworkers of America has negotiated more flexible contracts. "There's been tremendous improvement in the strength, health and sustainability of the U.S. steel industry over the past 20 months," said Mark Parr, a steel industry analyst at McDonald Investments. Other factors: The economy. Demand for steel has risen and firmed up prices as industries such as autos and construction equipment have recovered. The dollar. The euro has risen 39% against the dollar since Bush initiated the tariffs. That has priced most European steel out of the U.S. market. China. With Asia's economies recovering "and China sucking up all the extra steel around the world, there aren't a lot of imports coming in here," Barfield said. But steel executives and union leaders want more time. Wilbur Ross, chairman of International Steel Group, said he hopes Bush will couple any removal of the tariffs with changes that would make it easier for domestic producers to initiate complaints about imports. Labor leaders and Bush's Democratic presidential rivals acted Tuesday as if it were a foregone conclusion the tariffs would be scrapped. Bush "had no trouble standing up to the Europeans when he wanted to go to war (but) apparently doesn't have the same kind of backbone when it comes to taking a stand for American workers," the USWA said in a statement. Rep. Richard Gephardt, the presidential contender endorsed by the steelworkers, accused Bush of getting ready to declare a premature victory over imports. The Missouri Democrat likened the move to Bush's highly publicized flight to a U.S. aircraft carrier to declare victory in Iraq. "The president appears poised to once again claim 'Mission Accomplished,' " Gephardt said. "And we know what happened the last time he made such a premature claim without a plan of action to back it up." Contributing: Richard Benedetto, Jill Lawrence