On november 11th the World Trade Organisation (WTO) ruled definitively that America's so-called "safeguard" steel tariffs were illegal. The first response from the White House was defiant, but by mid-week it became clear that the Bush administration was in two minds about how to proceed. If it did not relent, Europe's response would be to slap retaliatory duties on $2.2 billion of products ranging from motor boats and sun glasses to textiles and orange juice. Its choice of targets is designed partly to serve Europe's own domestic interests by avoiding areas where it relies on American produce and, secondarily, to hurt producers in ways likely to do maximum damage to George Bush in next year's presidential election (see page 54).
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