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In a March 26th decision, the World Trade Organization (WTO) ruled that steel tariffs imposed by President Bush in 2002 are illegal, reported the New York Times. The case was brought by the European Union, which accused the U.S. of illegally protecting our domestic steel industry. Although the administration promised to appeal the decision, "I am in no doubt that the U.S. will lose this case, as it has lost all six previous safeguard cases," insisted EU trade commissioner Pascal Lamy.
The steel industry and trade union leaders hailed President Bush's decision to impose tariffs. Free market advocates excoriated it. Whether or not this presidential decision was correct, it was a usurpation of congressional power to set trade and tax policy. Putting the ...