Here’s What Happened When Bush Passed a Steel Tariff

bush steel tariffs

President Donald Trump has announced his intent to implement a 25% tariff on steel, and a 10% tariff on aluminium, largely consistent with what he’s been saying for decades now.

While he’s in favor of “free trade,” Trump argues that tariffs are acceptable in certain circumstances, such as when other nations place tariffs on certain goods, but we don’t (putting ourselves at a competitive disadvantage).

Of course, retaliation is the simplest strategy from another country in response to the tariffs. If we raise the tariff on imported steel to 25%, they’ll raise the tariff on their imported steel to 26%, and so on, and so forth, as each country “one-ups” the tariff on imported goods.

We know what to expect when we put steel tariffs into effect – because George W. Bush did the same. While his tariffs did save jobs in the steel industry (those involved in the production of steel), it cost more jobs in American industries dependent on steel, who had to pay higher prices for an item they need for production.

Bush placed tariffs ranging from 8%-30% tariffs in 2002 on several types of imported steel. As a result, 1,700 jobs in the steel industry were saved. But at what cost? A study by the Peterson Institute for International Economics found that when you take into account increased prices of steel, American consumers paid $800,000 for each job “saved.” Meanwhile, the study “estimated that the steel tariffs caused at least 4,500 job losses in no fewer than 16 states, with more than 19,000 jobs lost in California, 16,000 in Texas and about 10,000 each in Ohio, Michigan and Illinois.” Imagine that you’re an auto-manufacturer, for instance, and the price of steel goes up 30% overnight. How could that not severely disrupt your business?

The situation is similar today – with far more Americans having their jobs dependent on cheap steel than dependent on the production of expensive steel. In fact, one recent report from MarketWatch noted that “there are about 140,000 steelworkers in the U.S., according to the American Iron & Steel Institute, and about 6.5 million workers in steel-consuming manufacturers, Moody’s analysts wrote in reports published Friday.”

It’ll be easy to see the tariffs helping the 140,000 workers – but we can’t forget the 6.5 million they’ll harm.

What do you think of Trump’s request for steel tariffs? Tell us your thoughts below!

62 thoughts on “Here’s What Happened When Bush Passed a Steel Tariff”

  1. Trump has taken lots of companies INTO bankruptcy, and the only person who benefited was Donald Trump. The workers, suppliers, and stockholders all lost their money.

    Now he wants to bankrupt America. How is that a good thing?

  2. Trump has taken lots of companies INTO bankruptcy, and the only person who benefited was Donald Trump. The workers, suppliers, and stockholders all lost their money.

    Now he wants to bankrupt America. How is that a good thing?

  3. DONT FORGET, DONALD TRUMP IS NOT GEORGE BUSH, TRUMP IS FAR THE BEST BUSINESS AND ONLY REAL BUSINESS MAN THAT I HAVE SEEN IN OFFICE IN MY 87 YEARS. HE KNOWS WHAT HE IS DOING AND ALL YOU IDIOTS TRYING TO SECOND GUESS HIM HAD BETTER THINK AGAIN, YOU ARE NOT SMART ENOUGH. HE HAS BEEN RIGHT ON EVERYTHING HE HAS SAID. ALL I DO IS LISTEN TO THE BIASED NEWS, BUT I STILL HAVE THE BRAINS TO ADD 2 AND 2, YOU CANNOT DEPEND ON SOME IDIOT ANNOUNCER THAT KNOW NOTHING ABOUT BUSINESS TO TELL YOU WHAT IS GOOD FOR BUSINESS, THEY DO NOT KNOW AND THAT INCLUDE MOST SENATORS AND REPRESENTATIVES, MOST ARE ATTORNEY’S THAT KNOW HOW TO CUT DEALS. NOTHING ELSE.

  4. DONT FORGET, DONALD TRUMP IS NOT GEORGE BUSH, TRUMP IS FAR THE BEST BUSINESS AND ONLY REAL BUSINESS MAN THAT I HAVE SEEN IN OFFICE IN MY 87 YEARS. HE KNOWS WHAT HE IS DOING AND ALL YOU IDIOTS TRYING TO SECOND GUESS HIM HAD BETTER THINK AGAIN, YOU ARE NOT SMART ENOUGH. HE HAS BEEN RIGHT ON EVERYTHING HE HAS SAID. ALL I DO IS LISTEN TO THE BIASED NEWS, BUT I STILL HAVE THE BRAINS TO ADD 2 AND 2, YOU CANNOT DEPEND ON SOME IDIOT ANNOUNCER THAT KNOW NOTHING ABOUT BUSINESS TO TELL YOU WHAT IS GOOD FOR BUSINESS, THEY DO NOT KNOW AND THAT INCLUDE MOST SENATORS AND REPRESENTATIVES, MOST ARE ATTORNEY’S THAT KNOW HOW TO CUT DEALS. NOTHING ELSE.

  5. this article either out of ignorance or deliberately, totally misses the point.
    President Trump will use these tariffs(whether they are implemented or
    not is not the point) as bargaining chips with the countries involved. i have
    no doubt, the United States will come out the winner overall in these trade
    negotiations. we actually have a President who will be negotiating in the
    best interest of the country and not the politicians and swamp scum lobbyists
    in d.c.

  6. this article either out of ignorance or deliberately, totally misses the point.
    President Trump will use these tariffs(whether they are implemented or
    not is not the point) as bargaining chips with the countries involved. i have
    no doubt, the United States will come out the winner overall in these trade
    negotiations. we actually have a President who will be negotiating in the
    best interest of the country and not the politicians and swamp scum lobbyists
    in d.c.

  7. In other words we should just sell out to the highest bidder and run. Like the democrats. This is why the US is described as the Great Harlot, or Whore of Babylon in Revelation 17&18.
    OR, serve our God and operate our government and commerce for the benefit of our p-e-o-p-l-e. NOT foreign bankers and American socialists who desire to finish plundering this nation. End the Federal Reserve (foreign) Bank, CLOSE our borders, live by a simple code of law, like say, the Ten Commandments. AND ENFORCE the law, or live lawlessly and perish. Glutony, addiction, brigandry, have already destroyed the USA, But I would encourage a BIBLE recommendation to strenghten the things that remain.
    By the logic in the faulty argument above we should still be buying all our oil from foreign sources instead of the greatest oil boom in US history. Oh, your fake news hasn’t let you in on this, maybe lying instead about import and export factors to stop it. Those ‘factors’ (bankers) won’t make anything if it is made in the USA; but our american people will. Right now China owns the remaining iron ore available here, and Russia owns the Uranium rights to american mines. To busy checking out Ms. Kardashians bum to bother following what the communist governments in our country have been doing the last 100 years? Don’t feel stupid, you are only as dumb as the restovya and your fake news, and lying science.
    One final tip, though it be wasted on you, I worked in and owned metal manufacturing plants all my life until so called ‘cheap’ foreign steel forced me into plastic late in the 20th century. It is also about all those miners, steel workers, trainmen and truckers, distributers and, yes, other manufacturers who payed to buy what we made. Plus the dependent business and services in all those dead towns in the rust belt that thrived on the primary ones. Please tell me young man how AMERICA works, and the ‘experts’ who have destroyed it when they only benefitted from selling it out to its destroyers, Tell me WHAT it was if you can. JR

  8. In other words we should just sell out to the highest bidder and run. Like the democrats. This is why the US is described as the Great Harlot, or Whore of Babylon in Revelation 17&18.
    OR, serve our God and operate our government and commerce for the benefit of our p-e-o-p-l-e. NOT foreign bankers and American socialists who desire to finish plundering this nation. End the Federal Reserve (foreign) Bank, CLOSE our borders, live by a simple code of law, like say, the Ten Commandments. AND ENFORCE the law, or live lawlessly and perish. Glutony, addiction, brigandry, have already destroyed the USA, But I would encourage a BIBLE recommendation to strenghten the things that remain.
    By the logic in the faulty argument above we should still be buying all our oil from foreign sources instead of the greatest oil boom in US history. Oh, your fake news hasn’t let you in on this, maybe lying instead about import and export factors to stop it. Those ‘factors’ (bankers) won’t make anything if it is made in the USA; but our american people will. Right now China owns the remaining iron ore available here, and Russia owns the Uranium rights to american mines. To busy checking out Ms. Kardashians bum to bother following what the communist governments in our country have been doing the last 100 years? Don’t feel stupid, you are only as dumb as the restovya and your fake news, and lying science.
    One final tip, though it be wasted on you, I worked in and owned metal manufacturing plants all my life until so called ‘cheap’ foreign steel forced me into plastic late in the 20th century. It is also about all those miners, steel workers, trainmen and truckers, distributers and, yes, other manufacturers who payed to buy what we made. Plus the dependent business and services in all those dead towns in the rust belt that thrived on the primary ones. Please tell me young man how AMERICA works, and the ‘experts’ who have destroyed it when they only benefitted from selling it out to its destroyers, Tell me WHAT it was if you can. JR

  9. I am glad to see everyone here is excited to pay more for EVERYTHING you buy. An increase in the raw materials will cascade through every item you purchase. From the gas you put in your car to the the milk you buy at the store, not just the durable goods that you purchase that contain metal. The cost to run a farm, refine oil, deliver produce to the consumer will all be adversely affected by any increase whether domestic or foreign.
    All to try to save non-existing jobs in an industry that is already producing at or near capacity. Even it we magically opened a new plants to produce steel, there are not enough workers willing to man them. I know this because according to the Labor Department there are currently 1.5 million unfilled manufacturing jobs in the U.S. I know from experience the difficulty local companies are having trying to get people to fill the good paying manufacturing jobs.

  10. I am glad to see everyone here is excited to pay more for EVERYTHING you buy. An increase in the raw materials will cascade through every item you purchase. From the gas you put in your car to the the milk you buy at the store, not just the durable goods that you purchase that contain metal. The cost to run a farm, refine oil, deliver produce to the consumer will all be adversely affected by any increase whether domestic or foreign.
    All to try to save non-existing jobs in an industry that is already producing at or near capacity. Even it we magically opened a new plants to produce steel, there are not enough workers willing to man them. I know this because according to the Labor Department there are currently 1.5 million unfilled manufacturing jobs in the U.S. I know from experience the difficulty local companies are having trying to get people to fill the good paying manufacturing jobs.

  11. I am glad to see everyone here is excited to pay more for EVERYTHING you buy. An increase in the raw materials will cascade through every item you purchase. From the gas you put in your car to the the milk you buy at the store, not just the durable goods that you purchase that contain metal. The cost to run a farm, refine oil, deliver produce to the consumer will all be adversely affected by any increase whether domestic or foreign.
    All to try to save non-existing jobs in an industry that is already producing at or near capacity. Even it we magically opened a new plants to produce steel, there are not enough workers willing to man them. I know this because according to the Labor Department there are currently 1.5 million unfilled manufacturing jobs in the U.S. I know from experience the difficulty local companies are having trying to get people to fill the good paying manufacturing jobs.

  12. This is so funny, because the author of this article fails to realize that the same situation applies to those minimum wage earners DEMANDING $15 an hour and not giving a rat’s ass who it affects, even if it creates a loss of the very job they are to make $15 an hour with. Sounds like a bias article to me. If a liberal brings it up, it’s o.k. If a Republican mentions it, hell hath no fury like a pissed off liberal

  13. This is so funny, because the author of this article fails to realize that the same situation applies to those minimum wage earners DEMANDING $15 an hour and not giving a rat’s ass who it affects, even if it creates a loss of the very job they are to make $15 an hour with. Sounds like a bias article to me. If a liberal brings it up, it’s o.k. If a Republican mentions it, hell hath no fury like a pissed off liberal

  14. This is so funny, because the author of this article fails to realize that the same situation applies to those minimum wage earners DEMANDING $15 an hour and not giving a rat’s ass who it affects, even if it creates a loss of the very job they are to make $15 an hour with. Sounds like a bias article to me. If a liberal brings it up, it’s o.k. If a Republican mentions it, hell hath no fury like a pissed off liberal

  15. HEY ! You seem to be missing the main point. NO ONE IS FORCING OTHER NATIONS TO PAY TARIFFS ! All that they have to do to avoid tariffs is PLAY FAIR !!!! Why should we always have these multi-billion dollar trade deficits ????? You don’t think that the enormous trade deficit is costing us jobs? Think again !

  16. HEY ! You seem to be missing the main point. NO ONE IS FORCING OTHER NATIONS TO PAY TARIFFS ! All that they have to do to avoid tariffs is PLAY FAIR !!!! Why should we always have these multi-billion dollar trade deficits ????? You don’t think that the enormous trade deficit is costing us jobs? Think again !

  17. The writer, and most others ignore the Strategic necessity of preserving our Steel industry. Our National interest over rules a few lost jobs in other none critical industries. Are we talking about TV sets??? They are already made in China! Washers and Dryers? Ditto! Cars? Well if the Jap Cars and other imports go up 30%, the will help our auto industry (Provided they buy American Steel….riiiiight?)

  18. The writer, and most others ignore the Strategic necessity of preserving our Steel industry. Our National interest over rules a few lost jobs in other none critical industries. Are we talking about TV sets??? They are already made in China! Washers and Dryers? Ditto! Cars? Well if the Jap Cars and other imports go up 30%, the will help our auto industry (Provided they buy American Steel….riiiiight?)

  19. i am hoping it is a negotiation tactic and does not occur. starting trade wars in our current global economy is a loser for all involved ( workers and taxpayers especially).

  20. i am hoping it is a negotiation tactic and does not occur. starting trade wars in our current global economy is a loser for all involved ( workers and taxpayers especially).

  21. i am hoping it is a negotiation tactic and does not occur. starting trade wars in our current global economy is a loser for all involved ( workers and taxpayers especially).

  22. i am hoping it is a negotiation tactic and does not occur. starting trade wars in our current global economy is a loser for all involved ( workers and taxpayers especially).

  23. i am hoping it is a negotiation tactic and does not occur. starting trade wars in our current global economy is a loser for all involved ( workers and taxpayers especially).

  24. If GB would have stuck to his guns Pres Trump would not have to impose tariffs now. China keeps our products out by adding taxes , we don’t charge them anything. We lose good paying jobs. This is about growing the job numbers in the steel industry, not about saving the few we have left. We need Americans with decent job to pay taxes. Tariffs should be permanent. We are a consumer driven economy, we will still buy it anyway so why don’t we make tariffs help us pay off our national debt.

  25. Neither the administration nor the media are making the point properly. This is more than about jobs or prices. Steel is vital to national security. We have one steel plant left capable of making transformers.. When there are none we become dependent on the kindness of strangers. Did we learn nothing in the 1970’s? OPEC sucked us in with lower prices and then clamped down when we became dependent. Gasoline was rationed, very expensive and sometimes simply unavailable. I stood in those lines waiting 2 to 3 hours to get 8 gallons of gas for my beat up old VW Beetle. In PA you could only do that every other day based on the last digit of your license plate. Or you could take a 60 mile round trip on the PA turnpike where they would sell you gas because you were on the turnpike. The price was worse, you expended a couple of gallons to make the trip and paid tolls. With all the major outages of power we are experiencing in the Northeast do you really want to be dependent on the Chinese or even the Canadians or Germans to provide you with transformers? Yes the price may go up but it is the price of our liberty we are paying

  26. Neither the administration nor the media are making the point properly. This is more than about jobs or prices. Steel is vital to national security. We have one steel plant left capable of making transformers.. When there are none we become dependent on the kindness of strangers. Did we learn nothing in the 1970’s? OPEC sucked us in with lower prices and then clamped down when we became dependent. Gasoline was rationed, very expensive and sometimes simply unavailable. I stood in those lines waiting 2 to 3 hours to get 8 gallons of gas for my beat up old VW Beetle. In PA you could only do that every other day based on the last digit of your license plate. Or you could take a 60 mile round trip on the PA turnpike where they would sell you gas because you were on the turnpike. The price was worse, you expended a couple of gallons to make the trip and paid tolls. With all the major outages of power we are experiencing in the Northeast do you really want to be dependent on the Chinese or even the Canadians or Germans to provide you with transformers? Yes the price may go up but it is the price of our liberty we are paying

  27. Neither the administration nor the media are making the point properly. This is more than about jobs or prices. Steel is vital to national security. We have one steel plant left capable of making transformers.. When there are none we become dependent on the kindness of strangers. Did we learn nothing in the 1970’s? OPEC sucked us in with lower prices and then clamped down when we became dependent. Gasoline was rationed, very expensive and sometimes simply unavailable. I stood in those lines waiting 2 to 3 hours to get 8 gallons of gas for my beat up old VW Beetle. In PA you could only do that every other day based on the last digit of your license plate. Or you could take a 60 mile round trip on the PA turnpike where they would sell you gas because you were on the turnpike. The price was worse, you expended a couple of gallons to make the trip and paid tolls. With all the major outages of power we are experiencing in the Northeast do you really want to be dependent on the Chinese or even the Canadians or Germans to provide you with transformers? Yes the price may go up but it is the price of our liberty we are paying

  28. Neither the administration nor the media are making the point properly. This is more than about jobs or prices. Steel is vital to national security. We have one steel plant left capable of making transformers.. When there are none we become dependent on the kindness of strangers. Did we learn nothing in the 1970’s? OPEC sucked us in with lower prices and then clamped down when we became dependent. Gasoline was rationed, very expensive and sometimes simply unavailable. I stood in those lines waiting 2 to 3 hours to get 8 gallons of gas for my beat up old VW Beetle. In PA you could only do that every other day based on the last digit of your license plate. Or you could take a 60 mile round trip on the PA turnpike where they would sell you gas because you were on the turnpike. The price was worse, you expended a couple of gallons to make the trip and paid tolls. With all the major outages of power we are experiencing in the Northeast do you really want to be dependent on the Chinese or even the Canadians or Germans to provide you with transformers? Yes the price may go up but it is the price of our liberty we are paying

  29. If it makes China think carefully about their trade practises, Pres. Trump has achieved his aim. WELL DONE, another ‘UP-TICK’ for his policies! (He’a accumulting QUITE A FEW, ISN’T HE?)

  30. If it makes China think carefully about their trade practises, Pres. Trump has achieved his aim. WELL DONE, another ‘UP-TICK’ for his policies! (He’a accumulting QUITE A FEW, ISN’T HE?)

  31. Trump has taken lots of companies INTO bankruptcy, and the only person who benefited was Donald Trump. The workers, suppliers, and stockholders all lost their money.

    Now he wants to bankrupt America. How is that a good thing?

  32. DONT FORGET, DONALD TRUMP IS NOT GEORGE BUSH, TRUMP IS FAR THE BEST BUSINESS AND ONLY REAL BUSINESS MAN THAT I HAVE SEEN IN OFFICE IN MY 87 YEARS. HE KNOWS WHAT HE IS DOING AND ALL YOU IDIOTS TRYING TO SECOND GUESS HIM HAD BETTER THINK AGAIN, YOU ARE NOT SMART ENOUGH. HE HAS BEEN RIGHT ON EVERYTHING HE HAS SAID. ALL I DO IS LISTEN TO THE BIASED NEWS, BUT I STILL HAVE THE BRAINS TO ADD 2 AND 2, YOU CANNOT DEPEND ON SOME IDIOT ANNOUNCER THAT KNOW NOTHING ABOUT BUSINESS TO TELL YOU WHAT IS GOOD FOR BUSINESS, THEY DO NOT KNOW AND THAT INCLUDE MOST SENATORS AND REPRESENTATIVES, MOST ARE ATTORNEY’S THAT KNOW HOW TO CUT DEALS. NOTHING ELSE.

  33. this article either out of ignorance or deliberately, totally misses the point.
    President Trump will use these tariffs(whether they are implemented or
    not is not the point) as bargaining chips with the countries involved. i have
    no doubt, the United States will come out the winner overall in these trade
    negotiations. we actually have a President who will be negotiating in the
    best interest of the country and not the politicians and swamp scum lobbyists
    in d.c.

  34. In other words we should just sell out to the highest bidder and run. Like the democrats. This is why the US is described as the Great Harlot, or Whore of Babylon in Revelation 17&18.
    OR, serve our God and operate our government and commerce for the benefit of our p-e-o-p-l-e. NOT foreign bankers and American socialists who desire to finish plundering this nation. End the Federal Reserve (foreign) Bank, CLOSE our borders, live by a simple code of law, like say, the Ten Commandments. AND ENFORCE the law, or live lawlessly and perish. Glutony, addiction, brigandry, have already destroyed the USA, But I would encourage a BIBLE recommendation to strenghten the things that remain.
    By the logic in the faulty argument above we should still be buying all our oil from foreign sources instead of the greatest oil boom in US history. Oh, your fake news hasn’t let you in on this, maybe lying instead about import and export factors to stop it. Those ‘factors’ (bankers) won’t make anything if it is made in the USA; but our american people will. Right now China owns the remaining iron ore available here, and Russia owns the Uranium rights to american mines. To busy checking out Ms. Kardashians bum to bother following what the communist governments in our country have been doing the last 100 years? Don’t feel stupid, you are only as dumb as the restovya and your fake news, and lying science.
    One final tip, though it be wasted on you, I worked in and owned metal manufacturing plants all my life until so called ‘cheap’ foreign steel forced me into plastic late in the 20th century. It is also about all those miners, steel workers, trainmen and truckers, distributers and, yes, other manufacturers who payed to buy what we made. Plus the dependent business and services in all those dead towns in the rust belt that thrived on the primary ones. Please tell me young man how AMERICA works, and the ‘experts’ who have destroyed it when they only benefitted from selling it out to its destroyers, Tell me WHAT it was if you can. JR

  35. IndependentAmerican

    I am glad to see everyone here is excited to pay more for EVERYTHING you buy. An increase in the raw materials will cascade through every item you purchase. From the gas you put in your car to the the milk you buy at the store, not just the durable goods that you purchase that contain metal. The cost to run a farm, refine oil, deliver produce to the consumer will all be adversely affected by any increase whether domestic or foreign.
    All to try to save non-existing jobs in an industry that is already producing at or near capacity. Even it we magically opened a new plants to produce steel, there are not enough workers willing to man them. I know this because according to the Labor Department there are currently 1.5 million unfilled manufacturing jobs in the U.S. I know from experience the difficulty local companies are having trying to get people to fill the good paying manufacturing jobs.

  36. This is so funny, because the author of this article fails to realize that the same situation applies to those minimum wage earners DEMANDING $15 an hour and not giving a rat’s ass who it affects, even if it creates a loss of the very job they are to make $15 an hour with. Sounds like a bias article to me. If a liberal brings it up, it’s o.k. If a Republican mentions it, hell hath no fury like a pissed off liberal

  37. HEY ! You seem to be missing the main point. NO ONE IS FORCING OTHER NATIONS TO PAY TARIFFS ! All that they have to do to avoid tariffs is PLAY FAIR !!!! Why should we always have these multi-billion dollar trade deficits ????? You don’t think that the enormous trade deficit is costing us jobs? Think again !

  38. The writer, and most others ignore the Strategic necessity of preserving our Steel industry. Our National interest over rules a few lost jobs in other none critical industries. Are we talking about TV sets??? They are already made in China! Washers and Dryers? Ditto! Cars? Well if the Jap Cars and other imports go up 30%, the will help our auto industry (Provided they buy American Steel….riiiiight?)

  39. i am hoping it is a negotiation tactic and does not occur. starting trade wars in our current global economy is a loser for all involved ( workers and taxpayers especially).

  40. If GB would have stuck to his guns Pres Trump would not have to impose tariffs now. China keeps our products out by adding taxes , we don’t charge them anything. We lose good paying jobs. This is about growing the job numbers in the steel industry, not about saving the few we have left. We need Americans with decent job to pay taxes. Tariffs should be permanent. We are a consumer driven economy, we will still buy it anyway so why don’t we make tariffs help us pay off our national debt.

  41. Neither the administration nor the media are making the point properly. This is more than about jobs or prices. Steel is vital to national security. We have one steel plant left capable of making transformers.. When there are none we become dependent on the kindness of strangers. Did we learn nothing in the 1970’s? OPEC sucked us in with lower prices and then clamped down when we became dependent. Gasoline was rationed, very expensive and sometimes simply unavailable. I stood in those lines waiting 2 to 3 hours to get 8 gallons of gas for my beat up old VW Beetle. In PA you could only do that every other day based on the last digit of your license plate. Or you could take a 60 mile round trip on the PA turnpike where they would sell you gas because you were on the turnpike. The price was worse, you expended a couple of gallons to make the trip and paid tolls. With all the major outages of power we are experiencing in the Northeast do you really want to be dependent on the Chinese or even the Canadians or Germans to provide you with transformers? Yes the price may go up but it is the price of our liberty we are paying

  42. If it makes China think carefully about their trade practises, Pres. Trump has achieved his aim. WELL DONE, another ‘UP-TICK’ for his policies! (He’a accumulting QUITE A FEW, ISN’T HE?)

Leave a Comment

Scroll to Top