Steel imports 'hurting' U.S. firms

Steel imports 'hurting' U.S. firms

WASHINGTON (AP): The U.S. Commerce Department wants to impose
penalties on foreign steel manufacturers that are subsidized by
their governments, saying they are hurting the American steel
industry.

The companies in India, Indonesia, South Africa and Thailand
make hot-rolled steel, used to manufacture cars and heavy
equipment. The Commerce Department ruled Monday that penalties
should be imposed for damage to 20 U.S. steel companies in 13
states.

The preliminary order means the U.S. Customs Service may
collect penalty fees ranging from 1 percent to 34 percent of the
value of the hot-rolled steel the foreign companies export to the
U.S., depending on the amount of government subsidy U.S.
officials determine the manufacturer receives.

The fees will be placed in escrow until a final decision is
made by the Commerce Department and U.S. International Trade
Commission, which is also reviewing the matter.

David Phelps, president of the American Institute for
International Steel, said the Commerce Department ruling was "as
expected as the sun rising every day." Phelps said his
organization, which represents foreign manufacturers, hopes for a
more favorable decision from the U.S. International Trade
Commission.

"The commission has been more rigorous in its examination of
the industry. They don't always rule for us, but they are more
thorough," he said.

If a final decision goes against the foreign companies, a new
federal law calls for the American companies that filed the
complaint to get the punitive fees.