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For Immediate Release WEIRTON, W.VA. – Weirton Steel Corp.'s president and chief executive officer has proposed the federal government consider extending the 30 percent tariff on steel imports for longer than one year. John H. Walker presented the idea today to Grant D. Aldonas, under secretary for international trade in the U.S. Commerce Department. Walker was invited by U.S. Rep. Shelley Moore Capito, R-W.Va., to meet with Aldonas in Charleston, W.Va., to discuss steel issues. Last March, President Bush imposed three-year descending tariffs on various categories of steel imports. Most of those imports received a 30 percent tariff for the first year followed by a drop to 24 percent in year two and down to 18 percent in the final year. "I suggested the 30 percent tariff be carried through year two. At the end of the second year, the administration could review the matter and determine whether or not to retain or lower the tariff," Walker remarked. "We sincerely thank the Bush administration for imposing the tariffs to curb harmful steel imports and for providing a three-year break for our industry to regain its competitiveness. But the expected turnaround in our industry after four years of unfair imports is not happening as quickly as we thought it would. We are six months into the tariff program and just beginning to see some industry-wide improvements. Extending the 30 percent tariff beyond one year would greatly benefit our goal and that of the administration." In addition, from June through August of this year, the government granted 727 tariff exclusions for some steel imports like those made by U.S. steel firms. Walker noted that increased imports will enter domestic markets and U.S. steelmakers adversely impacted by the exclusions could increase their presence in those markets, forcing greater competition among domestic mills. "I believe the under secretary is at least pondering the tariff suggestion and will present it to the administration. I will follow up our meeting with a letter to various members of the administration and hope the issue will be discussed further," Walker commented. Other issues discussed included appeals by various nations to have the World Trade Organization (WTO) determine if the tariffs conform with WTO regulations; the need to ensure that additional exclusions do not negatively affect U.S. steel producers; the need to address legacy costs to promote consolidation within the domestic industry; and the importance of maintaining the Emergency Steel Loan Guarantee Program for steel companies seeking federally guaranteed bank loans. Weirton Steel is the seventh largest U.S. integrated steel company and the nation’s second largest producer of tin mill products.
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