U.S. might cut tariffs on building items

WASHINGTON – The Bush administration said Monday that it is considering adjusting high tariffs imposed on such items as lumber from Canada and cement from Mexico if building needs from Hurricane Katrina cause prices to spike.

Treasury Department spokesman Tony Fratto said that the administration has the executive authority to adjust the tariffs to meet special needs. The tariffs have been in place for a number of years since the U.S. lumber and cement industries won cases accusing importers of selling those products in this country at unfairly low prices, a practice known as dumping.

“The government has the authority to adjust the tariffs in an emergency situation, but no determination has been made yet,” Fratto told reporters.

Softwood lumber imports from Canada face a penalty tariff that averages 27 percent. Imports of Mexican cement from Cemex, the largest cement producer in that country, face a penalty tariff of 54.97 percent, although the Commerce Department last month recommended cutting that to 40.54 percent starting in December.

Building contractors have long complained that these duties are not justified and act as a tax on American homeowners and businesses by driving up the cost of construction.

Fratto said the administration will not make a determination on adjusting the tariffs until it had more information on whether prices of building products are being affected by Hurricane Katrina.

“Obviously, if there are severe price spikes and severe shortages, we would want to take a look at whether a government response” was needed, Fratto said.

The administration has created a rebuilding task force that includes the departments of Treasury, Commerce and Labor to coordinate the government’s response to the costliest natural disaster in U.S. history.

Fratto said that group – which is headed by Treasury Secretary John Snow, Commerce Secretary Carlos Gutierrez and Labor Secretary Elaine Chao – would examine such issues as the best way to redevelop the devastated areas.

Separately, the Labor Department announced Monday that it was creating a Web site to help people who have lost jobs because of Katrina find new work.

The Web site – www.jobsearch.org/katrinajobs – is designed to help people looking for new full-time employment either in their home state or in the state where they have relocated. It also provides information on part-time employment in the hurricane cleanup and rebuilding efforts.