Abstract

The trade war between the USA and Asia (and the EU as well) involving steel protection shows how protectionism has mainly covered the inefficiency of the US steel industry, which has never accepted the idea of restructuring. In line with what economic theory suggests, the costs for the US economy have been larger than the benefits. However, helping the steel industry - which is concentrated in few key States - has probably helped in a decisive way G.W. Bush to gain a second mandate.