US: US President George Bush is under pressure from his advisers to cut back US tariffs on foreign-made steel to avoid a global trade war. A decision is likely before the end of the week.
Whatever he does, Mr Bush faces a political backlash which could have ramifications in next year's presidential elections.
The tariffs were introduced in March 2002 to allow time for the loss-making American steel industry to modernise and consolidate. The World Trade Organisation declared last month that the duties are illegal and the European Union, Norway, Japan, Korea and China are threatening to retaliate if the US refuses to obey the WTO ruling by December 10th.
By ending them Mr Bush risks losing support in Pennsylvania, Ohio and West Virginia, the states where most American steel is manufactured. By keeping the tariffs however Mr Bush risks however infuriating manufacturing interests in states like Michigan and Minnesota where the protectionist measures have kept steel prices high.
Key White House advisers and US trade representative Mr Robert Zoellick have recommended an end to the tariffs because of the even more serious risk of a world trade war, a senior Bush adviser was quoted as saying yesterday.
The President will also be weighing the counsel of his influential political adviser Mr Karl Rove, as the states involved account for almost one third of the 270 electoral votes needed to win the White House in 2004.