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Read My Lips: President Bush Is No Free Trader
March 2002
"I am extraordinarily disappointed that the President has decided to make a political decision on steel tariffs rather than a decision based on what is good for the American economy," declared Mark Erickson, chairman of the Precision Metalforming Association (PMA). "The US steel industry will once again benefit from government protection at the expense of steel consumers," continued Erickson. "I am particularly concerned that steel suppliers will use this as an opportunity to ignore their existing 6 and 12 month contracts and raise prices immediately as soon as tariffs begin to take effect."
Over the past few months, PMA, individual member companies and other organizations representing steel using industries have presented convincing data about the impact tariffs will have on jobs in the metalforming and other steel-using industries. "The truth is, more manufacturing jobs will be lost from these steel restrictions than will be saved in the steel producing industry," commented William E. Gaskin, PMA president. The President has let us down by imposing this new tax on American manufacturers and small businesses,? he continued. "This decision demonstrates that Bush?s commitment to free trade is no more than lip service," he said. "Our members are steel consumers and this move puts them at a disadvantage in the global marketplace for fairly priced steel, thereby placing the entire industry at risk." Gaskin stated.
Protecting the steel industry will not help the American economy. According to a study conducted by Trade Partnership Worldwide, LLC, the massive job losses incurred in steel consuming industries will cost American consumers upwards of $400,000 per year for every steel job the president has protected. The president?s decision may result in a large number of American companies losing business to overseas competitors.
"We are unable to pass the high cost of steel onto our customers in the automotive, appliance and technology industries. Our customers will take their business outside the United States," lamented Erickson, president of Thomas Engineering Co. in Minneapolis, MN. "We see it happening every day, and it is only going to get worse now that the President has imposed these tariffs," he concluded.
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