Washington: Eighteen months after President George W Bush set aside his free trade principles and imposed heavy tariffs on imported steel from several countries, including India, to protect the American steel industry, US officials admit the move has proved counter-productive and Bush may be forced to roll back or reduce the tariffs.

"Key Administration officials have concluded that Bush's order has turned into a debacle," 'The Washington Post' reported on September 19.

Several economists said the tariffs have cost more jobs than they saved by driving up costs for automakers and other steel users.

"Politically, the strategy failed to produce union endorsements and appears to have hurt Bush with workers in Michigan and Tennessee - two states at the heart of his 2004 strategy," the 'Post' said.

"They tried to play politics and it looked like it was working for a while," said Bruce Bartlett, a conservative economist with ties to the Administration. "But now it has fallen apart."

Even the International Trade Commission (ITC), in its mid-session assessment of the three-year tariff programme's impact, concluded that the protection has backfired.

White House officials say Bush will not make a decision until "he has digested" the ITC report. However, his top economic advisers, said the 'Post', have united to recommend that the tariffs be lifted or substantially rolled back this fall, and several Administration officials said it is likely he will go along.

PTI