WASHINGTON, Dec. 1 (UPI) -- President George W. Bush flew into Michigan Monday to discuss his efforts to resuscitate the U.S. economy amid speculation he would soon repeal tariffs on imported steel to protect against retaliatory sanctions on U.S. exports.
The tariffs, ranging from 8 percent to 30 percent on imported steel and steel products, were imposed 20 months ago to buffer the ailing U.S. steel industry from damage caused by cheaper imports and to give the industry time to restructure and reorganize to better compete internationally.
European countries have threatened tit-for-tat action against a wide variety of U.S. products, including citrus fruit and textiles, as payback. Those actions could begin as early as mid-December following a World Trade Organization ruling against the U.S. squeeze.
News reports indicated Monday Bush advisers were urging the president to drop the sanctions to protect the overall economy, although such a move could harm him in the November general election in steel producing states such as Pennsylvania and West Virginia.
Steel-using industries such as the auto industry are opposed to the tariffs since it makes steel more expensive for them.
"The president still has not made a decision. It remains under review," White House spokesman Scott McClellan said Monday. "And beyond that, I don't want to speculate on the timing of any decision."
McClellan said the administration was continuing to consult with members of Congress and others on the issue.
Bush did not mention the tariff issue during his visit to Michigan, where he cheer-led party faithful at a Bush-Cheney fundraiser and then met and discussed the economy with owners and workers at two small business concerns. Instead he recapped his familiar theme of the country being buffeted by a recession, which was complicated by the economic damage wreaked by the Sept. 11, 2001, terrorist attacks on New York and Washington. And he said the economy showed strong signs of rebound.
"When we talk about job creation and job growth, it's important to understand we have come through a lot, which speaks really to the greatness of America, doesn't it," Bush said at Dynamic Metal Treating, a family owned firm with 26 employees in Canton, Mich., which treats steel components for the automotive and oil industries.
"It speaks to the greatness of the entrepreneurial spirit, to the high productivity of the American workforce. I think it speaks a little bit, as well, to the policies we put forth."
Bush reiterated the administration stance that his tax cuts put money back into the pockets of the people, which in turn has spurred spending. He also stressed the cuts were good for small businesses, the owners of which generally do not enjoy corporate tax breaks, yet account for most jobs in the country.
He again called for Congress to make his two tax cuts permanent. He also called for laws limiting medical liability suits and class action suits to bring down medical costs and the costs of doing business, and for a new energy bill. All those issues were scheduled for possible action on Capitol Hill next year.
Bush's appearances in Michigan came on the heels of Commerce Department economic data showing a strengthening economy after months of doldrums. Economic growth in the third quarter was adjusted to an annual 8.2-percent rate from an estimated 3.3 percent growth rate in the second quarter. The Labor Department put initial claims for unemployment insurance at 351,000 in the week ending Nov. 21, a decrease of 11,000 from the previous week's revised figures, bring the overall rate to about 6 percent.
The Federal Reserve, meanwhile, reported its 12 regional banks saw new growth in their regions.
Retail sales, a continued strong housing sector and businesses increasing output and inventories were believed to play key roles in the rosier picture.
Bush's visit to Michigan included more than just talk about economics. The fundraiser in Dearborn and another later in New Jersey were adding more than $1 million to his re-election coffers, which already is said to top $100 million.
