In a development that could have long-term implications for the international leather trade, the USA said yesterday that it is to impose tariffs of up to 30% on most imports of steel.

Taken to protect US steel jobs, the action will effectively block steel from the European Union, Japan, South Korea, Russia and China from the world's largest market and drastically reduces the voluntary quotas agreed with Europe and Japan in the mid-1980s.

While falling some way short of the 40% tariff that the US steel sector had been seeking, the move is widely seen as having the potential to trigger to a bitter international trade dispute that draws in all kinds of products - footwear and leather included.  It might also touch off a series of smaller disputes outside the US, as the steel producing nations vie with one another to protect their remaining markets.

The announcement was met with widespread dismay from within the international community. On hearing the news, EU Trade Commissioner Pascal Lamy said: "The US decision to go down the route of protectionism is a major setback for the world trading system. Imports are not the cause of US difficulties and the measures announced today will not only not provide a solution but aggravate matters. I fear today's short-sighted move will end any hope of finding an internationally agreed solution at the OECD to overcapacity problems faced by the world steel industry, and will not rein in global subsidies. The EU will of course launch an immediate complaint in Geneva against this clear violation of WTO rules and we will take whatever measures are necessary to safeguard our own market."