PI 1.9 Protective Tariffs. In the USA, steel production has remained constant since the 1970s at about 100 million tons per year. Large integrated companies, like US Steel, remain important in the industry, but roughly 50 per cent of domestic production is now produced by newer, nimble, and highly efficient mini-mill companies. Foreign imports account for roughly 30 per cent of domestic steel use. In order to stem the tide of rising imports. President George W. Bush announced in 2002 that the USA would introduce up to 30 per cent tariffs on most imported steel products. These measures were to remain in place for 3 years. To show how protective tariffs can help domestic producers, consider the following cost relations for a typical competitor in this vigorously competitive market?