President Bush has received two mid-term reports, critical of his decision to implement steel tariffs, here is a relevant International Trade Commission link. The tariffs are not only bad economics, but it seems, bad politics as well. Steel price increases appear to have cut out some jobs in the potential swing states of Pennsylvania, Ohio, and Michigan. And most of Bush’s economic advisors opposed the tariffs from the beginning. The Washington Post account (see the above link) suggests that the Bush Administration is likely to nix the tariffs:
“The only reason they won’t do it is if they’re unwilling to admit they made a mistake,” said a Republican strategist who works closely with the White House.
An alternative account from The New York Times (registration required) implies that the matter is less settled. Even the Post notes that giving up on the tariffs would be a significant loss of face for Karl Rove, their initial backer. Either way, this issue is likely to prove an embarrassment to the Bush reelection campaign.