03-02-2018, 02:42 PM
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#342
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Registered User
Join Date: Jul 2013
Posts: 17,095
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Those who do not learn from history are doomed to repeat it.
Bush imposed similar tariffs on steel in 2002.
From Wiki
Quote:
On November 11, 2003, the WTO came out against the steel tariffs, saying that they had not been imposed during a period of import surge—steel imports had actually dropped a bit during 2001 and 2002—and that the tariffs therefore were a violation of America's WTO tariff-rate commitments. The ruling authorized more than $2 billion in sanctions, the largest penalty ever imposed by the WTO against a member state, if the United States did not quickly remove the tariffs.[4] After receiving the verdict, Bush declared that he would preserve the tariffs.[5] In retaliation, the European Union threatened to counter with tariffs of its own on products ranging from Florida oranges to cars produced in Michigan, with each tariff calculated to likewise hurt the President in a key marginal state. The United States backed down and withdrew the tariffs on December 4.[6]
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According to a 2005 review of existing research, all studies on the tariffs "find that the costs of the Safeguard Measures outweighed their benefits in terms of aggregate GDP and employment as well as having an important redistributive impact."[1]
Steel production rose slightly during the period of the tariff. [7] The protection of the steel industry in the United States may have had unintended consequences and perverse effects. A study from 2003 that was paid for by CITAC, a trade association of businesses that use raw materials, found that around 200,000 jobs were lost as a result.
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https://en.wikipedia.org/wiki/2002_U..._tariff#Impact
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