Steel and Tariffs Essay -- Economy Economics Essays

Steel and TariffsWe have all heard this joke. Only now the horse has been replaced with consumers of sword in the US vane industry. Why? Many companies in our economy that use steel as an input to produce their goods are staggering due to recent extraordinarily heights steel prices. President Bush dropped a responsibility on imported steel on Thursday March 4th according to basic economics, this cancellation of the steel import tariff should have dropped the price for US domestic consumers. Unfortunately though, that hasnt happened. Steel prices are currently at record highs and many forecast heretofore higher prices to come. This puts huge pressure on small businesses that are dependent on steel for their well being. With higher prices threatening these business owners profits and proximo sales all, including the very large companies, are human faceing for any break in the high priced storm that seems to be closing in on the rising of the steel industry. While many companies are sending out fair warning that consumers can expect higher prices in the car, furniture, and construction industries, many look for ways to cut costs and layoffs have been mentioned. Could this have been avoided? Many look to the recent lifting of tariffs imposed on steel imports as a possible culprit. Although the lifting of the tariff has affected the market, it is unlikely that the lifting correlates with the recent spike in steel prices. With the United Steel Workers of America screaming that the dropped import tariffs are, clear evidence of capitulating to European act upon and a sorry betrayal of American steelworkers and their communities, (Crutsinger 1) and representatives in congress showing much disgust at the presidents lack of respect and compassion for o... ...k, John. US Steelmakers in Continuing Crisis. Challenge.Vol. 47, no. 1, January/February. M. E. Sharp, INC. 2004. 86-106.Crutsinger, Martin. Bush drops steel import tariffs, accused of betrayal by industryTh e Game Cock. 04/05/04. <http//www.dailygamecock.com/news/2003/12/05/News/BushDrops.Steel.Impot.Tarif.Accused.Of.betrayal.By.Industry-573188.shtmlGoodrich, Ben. Hufbauer, Gary Clyde. Steel Policy The Good, the Bad, and the Ugly. Internationas economic science Policy Briefs. January 2003.---. Time for a Grand Bargin in Steel? Institute for International Economics. 04/05/04. <http//www.iie.com/publications/pb/pb02-1.htm.Hagenbaugh, Barbara. Steel Prices Soar 66% in a human race Market gone mad. USA Today. McLean, VA. Feb 20, 2004. pg B.01Irwin, Douglas A. Free Trade Under Fire. Princeton, New Jersey Princeton University Press 2002.