March 30, 2004

By: Stacie Williams
Website: http://www.1st-in-home-decor.com

APPLIANCE INDUSTRY SPEAKS OUT ON STEEL TARIFFS

Joseph M. McGuire, President of the Association of Home Appliance Manufacturers today testified before the International Trade Commission regarding the tariffs on imported steel and their effect on the home appliance industry. The hearing is part of the ITC’s congressionally requested study on the tariffs’ impact on steel consuming industries. AHAM opposes the steel tariffs and believes that the program should be terminated in order to maintain excellent quality and consumer value for home appliances produced in the U.S. and to keep home appliance manufacturing jobs on U.S. soil.

AHAM members produce more than 94% of the appliances shipped for sale each year within the U.S. and consume nearly 3 million tons of steel per year, most of which is hot- and cold-rolled and galvanized, supplied by domestic companies.

As a direct result of the steel tariffs, implemented under section 201 of the Trade Act, AHAM members have experienced increased costs of steel products and oftentimes difficulties in obtaining quality steel from domestic steel producers. Several AHAM members have seen purchase prices increases from 17% to 30% from pre-April 2002 levels. Increases from a year ago in steel prices on the spot market have averaged over 37%. This dramatic increase has impacted appliance production, and in some cases, changed product assembly schedules.

According to a study produced by The Consuming Industries Trade Action Coalition, over 200,000 Americans lost their jobs as a result of higher steel prices in 2002, resulting in over $4 billion in lost wages.

Joseph M. McGuire stated, We oppose the 201 steel safeguard tariffs and believe that the time has come to terminate the program. We do, however, hope for a resolution of the problem facing the domestic steel industry that provides them with the relief that they need, but at the same time does not harm our industry.

About The Author:

Stacie Williams is a successful author and regular contributor to http://www.1st-in-home-decor.com.  Home decorating tips and ideas to showcase any room with style.