Impact of Protectionism on the U.S Steel Industry

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2. “US steel industry should be protected not only because of the pride associated with it but also because of its key role in the US economy.” Comment

Answer:

President Bush implemented article 201 in March 2002, which imposed tariff measures to help domestic producers compete with imported steel. Analysts who supported President’s tariff measures felt that the US steel industry should be protected not only because of the pride associated with it but also because of its key role in the US economy.

Steel is an important commodity, next only to oil in the US. It acted as the major source of political and economic strength for the country, especially after World War II. Steel is used in manufacturing automobiles, construction of bridges, buildings, etc. Since the US has considerable number of automobile manufacturing plants, the US steel industry should be able to provide the required output of steel, which, otherwise, would have to be imported.
 
The US steel industry provides jobs to thousands of Americans and contributes to the total per capita income. If the struggling steel industry is not protected, it would result in severe job losses, which would increase unemployment and decrease savings and per capita income. The burden of creating new jobs for these people would fall on the government. Hence, the steel industry should be protected keeping in mind the repercussions that could occur if it is not protected.