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.