US steel firms, workers seek high import tariffs

WASHINGTON: US steel firms and steelworkers said last week they would propose tariffs ranging from 30 to 50 per cent on steel imports to give domestic producers time to restructure. The recommendations will be forwarded to the US International Trade Commission, which last month ruled that domestic producers had been harmed by steel imports and were eligible for protection under Section 201 of US trade law.

In a conference call with reporters, an attorney representing the United Steelworkers union said the labour group also would urge the US International Trade Commission to recommend to President George W Bush that he set a domestic price floor on steel. Mr Bush has until mid-February to decide what actions he will take. Robert Lighthizer, a trade attorney representing integrated steel mills, said companies were seeking a tariff of 40 per cent on steel imports, or a minimum of $100 per tonne, whichever is greater.

Terrence Stewart, a trade attorney representing the steelworkers, said the union was seeking a 50 per cent tariff on all carbon and alloy steel products, but a lower level of 30 per cent on certain other steel imports. A domestic price floor is needed to boost prices because the tariffs might not be enough by themselves to keep more US steel firms from going into bankruptcy.

Factory orders slide sharply
New orders for goods made at US factories dropped sharply in September, the government said last week in a report that provided more evidence the US manufacturing sector’s year-long recession is far from over.

Led by large declines in orders for transportation, computer and electrical equipment, the value of US factory orders in September fell 5.8 per cent — the biggest drop since January — to a seasonally adjusted $313.15 billion, the commerce department said. Orders fell 0.1 per cent in August.

The orders decline in September was worse than forecast by Wall Street analysts who on average figured factory orders fell 4.7 per cent in September. Orders for transportation equipment, including car parts, aircraft and boats, slid 15.8 per cent in September following a 2.1 per cent decline in August. Orders for computers and electronic products fell 8.4 per cent in September after rising 0.2 per cent in the prior month while orders for electrical equipment, appliances and components sank 9.6 per cent following a 2.2 per cent drop in August.

Shipments of factory goods fell 4.2 per cent in September after a 0.3 per cent decrease in the previous month. Inventories, meanwhile, fell for the eighth straight month, declining 0.9 per cent in September after posting a 0.7 per cent decrease in August. The inventory-to-shipments ratio rose to 1.43 in September from 1.38 in the prior month.

Economists widely believe the US manufacturing sector, which accounts for 15 per cent of the nation’s economic activity, has been in a deep recession for more than a year. Even before September 11, factories had been hit hard by a slowdown in the US economy as demand has dropped off and firms have operated out of existing inventories.

The commerce department report was in line with other data that have suggested it may be some time before the manufacturing sector stages a comeback.

— Reuters