I am a little bit disappointed with W's decision to impose 30 percent tariffs on certain imported steel.

I know it's tough to compete in the modern world and all, but really, whatever happened to the free-trade, over-my-dead-body, no tax-increase W we voted for?

I know the steelworkers union put the thumbscrews on W over this issue and frankly, it could have ended up worse.

The steel people wanted a 40 percent tariff and also asked the government to pony up 10 or 12 billion of our favorite America tax dollars to help bail out the pension plans of bankrupt steel companies.

W just said no to the bailout.

But frankly, the tariff business is bad enough.

The tariffs target places like China, Russia, South Korea, Japan and the Ukraine. Exempted are places like Canada, Mexico and developing nations.

Now I understand that foreign steelmakers don't have all the OSHA, EPA and other workplace regulations to contend with like their U.S. counterparts. And I also realize foreign steel industries in some of those nations receive direct and indirect government subsidies.

That in and of itself gives them a bit of a competitive advantage, to be sure.

And the steel industries in those companies don't have a steelworkers union like the one in the U.S., either. So their workers don't make an average of $30 or $40 per hour when you include a benefits package.

And frankly, I think the wage thing plays a much more prominent role in the profitablity of steel companies and their abilty to compete in the world market than does the regulation thing.

I think W loses a whole bunch of trade credibility on this issue and I also think the propensity for harm to our economy is pretty significant.

While the economy is poking along, trying its best to eke out some sort of modest recovery, along comes this tariff deal that has thoroughly honked off the European Union.

So what, you ask?

Well, the EU, along with the aforementioned nations that are the tariff targets, plans to take up the issue during World Trade Organization talks later this year.

How would you like to be the U.S. representative at that little meeting?

And worse yet, the EU and the targeted nations are talking about a few little tariffs of their own - on products we export to their countries.

What that means is falling demand for U.S. products overseas. That means lower profits and fewer jobs. Does that sound like a good thing for our economy right now?

And of course the tariffs - even at 30 percent - aren't going to stop steel imports, just make the steel more expensive.

Right now, the average car has about $1,000 worth of steel in it. That will go to around $1,200 because of the tariffs.

May not sound like a lot, but who do you suppose will pay it? Do you think the auto companies will absorb it?

What about the appliance manufacturer? The lawnmower manufacturer? The stapler manufacturer?

Did you ever stop to think how many things around you have steel in them? It's pretty amazing.

When the prices of all those products rise, the propensity for lost jobs and lower demand looms.

It's simple economics.

In fact, the manufacturers that use steel say the increase in costs associated with the tariffs will make imported products look better in the U.S. market. They also say the tariffs will cost more jobs in all other industries than they will save in the steel industry.

I tend to agree with them, which leads me to believe this is really risky business in this economy.

Sure, the steel industry is hurting right now. Prices are falling, plants are closing. But I don't think that's entirely the fault of foreign steel manufacturers.

Perhaps the steel industry should have asked for an easing of regulations and an easing of labor costs. Those things would go a long way toward making U.S. steel companies more competitive in the world market.

Another thing that's goofy about this whole tariff business is that they will only last three years, ostensibly to give the beleaguered U.S. steel industry a chance to get back on its feet.

But the reasons imported steel is cheaper - lower labor costs, fewer regulations and government subsidies - aren't going to go away in three years.

So what's the point?

Well, I think I know the point and this is what is most disappointing to me.

With so much to lose and so little to gain the only reason I can see to enact tariffs at this time is political.

I think W knows that heavily industrial states like Pennsylvania, West Virginia and Ohio are keys to Republicans regaining control of the House of Representatives, not to mention his own re-election bid in 2004.

The tariff decision seems to be at odds with W's own ideology on trade and labor issues.

Too bad he appears to have abandoned his ideology for a little political advantage. [[In-content Ad]]