Special Edition

      New Steel Tariffs Could Hurt U.S. Lumber Mills

Steel Tariffs Create Challenges For Our Industry

The impact of new tariffs on a wide range of steel imports could be felt by lumber mills across the United States. The raw steels used in circle saws, band saws and knives are all subject to a new 30% tariff which goes into effect March 20.
Prices could rise on cutting tools for the wood products industry. "Steel represents half our costs," says Pacific/Hoe Saw And Knife Company President, George Jacobsen, "Prices could go up and we can't help it," Jacobsen stated. "We're in this together with our customer."

Specialty steel not available domestically

Saw manufactures like Pacific/Hoe are especially frustrated because the specialty steels used by their industry are not available domestically. "We rely on international specialty mills to make products not available domestically," says Jacobsen.

Several specialty steel mills around the world make steels for certain markets very efficiently and cost effectively. These have not been large enough markets for the major U.S. steel manufacturers to find profitable. "All of the steels we use fall under this tariff," says Jacobsen.

"We have done, and will continue to do, everything in our power to get these cutting tool steels exempted from this tariff," pledges Jacobsen.

The tariffs will allow domestic steel producers to raise their prices President Bush make the decision to impose the tariffs in an effort to give relief to the troubled U.S. steel industry. The three-year tariff will be levied at 30% the first year, 24% the second year and 18% the third year.

Domestic companies that import and consume steel contend the tariff will cost more jobs than it saves.

The Wall Street Journal called the move "politically driven," and said it was "likely to sustain U.S. firms that otherwise would have failed and weaken incentives for industry wide consolidation." The international community has reacted strongly.

     Pacific/Hoe V.P. Presented Testimony In Washington

Spoke on Behalf of Wood Products Industry

Pacific/Hoe Vice President Jim Ruthven travelled to Washington D. C. in January to personally present information to the United States International Trade Commission on behalf of U.S. cutting tool manufactures and lumber mills that would be negatively impacted by these new tariffs.

"We have done everything possible to educate the U.S. Trade Representative," says Ruthven. "We've done all we could do to prevent this."

Ruthven has presented four separate formal affidavits, and says he will probably be returning to Washington D.C. in the near future.

"We are continuing our effort to get these specialty cutting-tool steels excluded from the tariff," Ruthven promises.

     YOU CAN HELP

Here's What You Can Do Today

You can help by writing or e-mailing your senators and Congressional representatives within the next 30 days. Ask them to help our industry by having the specialty steels used to produce cutting tools put on the exemption list.

In addition, you can write to the United States Trade Representative.

     Congressional Pressure Can Help Draw Attention to 
                    Our Industry's Needs

Below is a copy of a letter sent jointly be all of Oregon's delegation to Congress to Robert Zoellick, United States Trade Representative. Just as political pressures backed by the steel interests brought about the tariff rulings, political pressure can bring attention to the needs of our own Industry.

YOU CAN HELP

Alert your fellow filers. Contact your senators and representatives today. Ask them to exempt band saw steel, high-carbon hot-rolled alloy sheet steel and chipper knife steel. In addition, you can write directly to:

The Honorable Robert Zoellick
United States Trade Representative
600 17th Street N.W.
Washington, D.C. 20508