Did political factors come into play in Mr Bushs decision?
Most certainly. The US president, George Bush, needed political support from key states such as Pennsylvania, West Virginia and Ohio, all of which produce steel, in advance of last year’s mid-term elections. He risks alienating steel producers and unions in those states before next year’s presidential elections if he stops the tariffs, which were imposed in March. Ironically, Mr Bush’s economic team, which was divided on the tariffs last year, is now united on dumping them. Why the change? Some of the president’s advisers, including his top political strategist, Karl Rove, fear that the tariffs may have backfired politically, costing Mr Bush more support in steel-using states such as Michigan and Tennessee than they won him in West Virginia and Pennsylvania. US industries that use steel, such as those manufacturing appliances and cars, have been pressing for a repeal of the tariffs, complaining that higher steel prices are eroding their profits in a generally tough environment for US m
