Bush imposes 30% steel tariffs

President George Bush tonight slapped punishing tariffs of between 8% and 30% on several types of imported steel in an effort to aid ailing US industry, drawing criticism from American allies.

‘‘An integral part of our commitment to free trade is our commitment to enforcing trade laws to make sure that America’s industries and workers compete on a level playing field,’’ Mr Bush said in a statement from the White House.

He urged US steel companies to take advantage of the ‘‘temporary safeguards’’ and restructure their industry.

The tariffs-and-quota plan, which takes effect on March 20, can be amended by Mr Bush if the industry’s financial crisis worsens or eases in the next three years.

The action, while short of the 40% tariffs sought by companies, was generally applauded by the US industry.

The long-awaited decision was described by advisers as a compromise approach, one designed to protect the US industry while minimising backlash from overseas and from US manufacturers that rely on cheap steel.

The plan exempts several US trading partners including Canada, Mexico and a handful of other nations, among them Argentina, Thailand and Turkey.

Nations hardest hit by the tariffs will be China, Japan, South Korea, Ukraine and Russia.

In Moscow, Russian Prime Minister Mikhail Kasyanov said the tariffs ‘‘will have a negative impact on Russia’s steel industry’’ but said the move would not spark a trade war.

The European Union cautioned that relations with the US would suffer under the tariff decision and hinted at possible trade retaliation against American products.

‘‘Steps will have to be taken if the Americans impede our trade in steel,’’ said European Commission President Romano Prodi in a letter to Mr Bush.

More than 30 US steel makers have been declared bankrupt in recent years and the price of basic steel has fallen dramatically.

Mr Bush said: ‘‘I take this action to give our domestic steel industry an opportunity to adjust to surges in foreign imports, recognising the harm from 50 years of foreign government intervention in the global steel market.’’ He offered laid-off steelworkers job training and help with health insurance costs.