With a bit of caution in their voices, local steel industry executives said they could live with the tariffs the Bush administration imposed on imported products.

Most acknowledged the tariffs were less than they had hoped for. The steel industry and unions called for a 40 percent tariff, but 30 percent is as high as Bush's plan goes.

"We're hopeful,'' said Bill Perrine, president of Sharon Tube Co. "I think it's a positive. I think the president did do some positive things for the industry.''

Under a three year program, the Bush administration said it will impose a 15 percent tariff on pipe and tube imports in the first year, 12 percent in the second year and 9 percent in the third. The International trade Commission had recommended that no tariffs be imposed unless more than 2.6 million tons of pipe were imported annually. In 2000 2.6 million tons were imported into the United States; last year 2.65 million tons were imported.

Pipe and tube producers say they were being hurt at those import levels.

"This is so much better than what the ITC recommended,'' said Jim Feeney, retired vice president at Wheatland Tube Co.

Taking the quotas off the table was a crucial factor, agreed Bill Kerins, vice president at Wheatland Tube.

"We're glad the president recommended tariffs as opposed to tariffs with quotas,'' Kerins said.

Overall, Kerins said he was pleased, but noted pipe imports at the end of last year still accounted for 57 percent of the American market. Even with the tariffs there was still a good chance import levels would be in the 50 percent range.

"With the low levels of foreign currency and the value of the dollar it's hard to tell,'' he said.

Kerins credited Bush for taking a major political step in the decision.

"He did what the prior administration didn't do,'' Kerins said.

Pipe and tube producers had hoped for a 20 percent tariff under a four year program. But Feeney said the industry knew it was very unlikely the administration would go for a four year deal.

"I think we can live with 15 percent,'' he said. "Personally, I'm sort of satisfied.''

Roger Schagrin, a Washington, D.C. attorney representing the Committee on Pipe and Tube Imports, a trade group, was even more upbeat.

"Obviously, this is a very good decision for the folks in the Shenango Valley,'' Schagrin said. "I think the valley did well. I think in the end the White House did the right thing.''

The Shenango Valley is known as the pipe and tube capital of the world with Wheatland Tube, Sharon Tube Co. and AK Steel Sawhill Tubular Division all located here. Sharon Tube and Wheatland Tube fought for imports while Sawhill made no overtures to the ITC. Wheatland Tube is in the process of buying Sawhill.

Flat-rolled steel, which is used to produce pipe and tubes and accounts for more than half of production costs, also got relief with a 30 percent tariff in the first year, 24 percent in the second and 18 percent in the third.

It was important that when flat-rolled producers got a hefty tariff that pipe and tube producers get some kind of help, Feeney said.

"You would have had a 30 percent increase in costs with no offsetting duties,'' he said.

By not imposing duties on imported pipe and tube products it would have been impossible for American producers to pass along the higher steel costs, Feeney added.

Duferco Farrell Corp. had been closely watching what Bush would do on tariffs for steel slabs. The Farrell steelmaker imports nearly all of its steel slabs which are rolled into steel coils.

The administration set tariffs on slabs at 30 percent the first year, 24 percent the second and 18 percent the third. But, and it's a big but tariffs would only be triggered if imports hit above 5.4 million tons annually.

Mexico and Canada export about 1.6 million tons annually into the U.S. which is exempted from the tariffs. If another 5.4 million tons were exported into the U.S. the 7 million ton level would set an all-time record level for slab imports, Feeney said.

"I think Duferco should be pleased with this tariff rate quota,'' Feeney said.

Indeed they were.

"The president's decision should improve our prices and operating margins,'' said Bob Miller, chief financial officer for Duferco. "We're pleased he put the 30 percent tariffs on finished goods. As far as slabs go, that's also a good thing. He separated our principal feed stock. He recognized this is a successful business model.''

United Steelworkers pulled out the stops in seeking 40 percent tariffs on steel imports. The USW hosted a rally near the White House last Thursday attended by 30,000 steelworkers and others, including 100 area residents.

Charlie Rice, president of USW Local 1355 which represents production and maintenance employees at Sharon Tube Co. was among those who attended the rally. He was upset with the tariffs on pipe and tubes.

"I think they got the shaft here,'' Rice said. "I think the pipe and tube industry should really be upset.''

In the end though Rice said he and his fellow workers would deal with the hand they were dealt.

"When you have a lemon you make lemonade,'' Rice said.