US Panel Decides to Keep Steel Tariffs

(Akron/Tire Review) The US International Trade Commission voted 4-2 yesterday to retain tariffs on steel imports, saying that removing the duties would further hurt the struggling US steel industry. The tariffs specifically cover steel from Japan, Brazil and Russia. Duties on flat-rolled steel range from 20 per cent to 50 per cent, and were imposed about five years ago.

Since then, though, steel prices on the world market have risen rapidly, due primarily to increased demand from China, India and Eastern Europe. The price of flat-rolled steel was around $270 per tonne in early 2002, but jumped past $740 per tonne by last September. More recently, prices have hovered around $625-$650.

Still, the Commission remains concerned about overseas steelmakers “dumping” product on the US market. Automakers and other industries that depend on steel – including the tyre industry – say the import duties have led to higher manufacturing costs.