Foreign Steel Keep Out

The U.S. International Trade Commission tossed an election-year grenade at the Reagan Administration last week. By a vote of 3 to 2, the commissioners recommended that the President impose sweeping new quotas and tariffs to protect many kinds of American steel products from foreign competition. In the case of semifinished steel, for example, the ITC suggested that a 20% tariff should be levied if imports exceed 1.5 million tons per year. Foreign shipments have captured about 26% of the American steel market. Trade experts estimate that the actions recommended by the ITC would keep imports at 15% to 20% of U.S. sales.

The President has 60 days to decide what to do. Reagan is philosophically opposed to protectionism, but he may agree to import curbs rather than risk losing votes in big steelmaking states such as Pennsylvania and Ohio. The quotas, however, would limit the supply of steel in the U.S. and thus raise its price. That, in turn, could hurt all consumers by driving up the prices of a wide range of products,