EU to target GOP over steel tariffs

The European Union is making plans to retaliate against President Bush’s recent imposition of steel tariffs by hitting the Republican Party where it hurts the most: at the ballot box.

THE EU IS preparing a list of U.S. imported products valued at $2.1 billion annually that could be hit with heavy tariffs. Among the items on the list: Harley-Davidson motorcycles, Tropicana orange juice, and textiles and steel products. Many of the targeted industries are concentrated in states such as Florida, Wisconsin, Pennsylvania and West Virginia, which Mr. Bush battled for in his narrow election victory in 2000. These states figure prominently in the White House’s effort to retain control of the House of Representatives in the fall elections.

The Bush tariffs, which took effect this week, apply to most imported steel but will hit European steel producers hardest of all. Mr. Bush said he will review the three-year tariff program after 18 months to assess its effectiveness in helping the U.S. steel industry’s efforts to restore profitability.