It's probably just a coincidence, but on the same day President Bush lifted tariffs on steel imports 16 months early, the U.S. State Department normalized trade relations with Serbia and Montenegro.

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The two events illustrate how globalization has made it harder for more worldly steelmakers to reconcile conflicting interests when it comes to the thorny issue of trade. U.S. Steel, the most global of U.S.-based producers, is a case in point.

U.S. Steel has a mill in Serbia, whose troubled economy stands to benefit as the result of trade restrictions being lifted last week. More importantly, the fortunes of U.S. Steel's profitable operations in the Slovak Republic are linked to that country's entry into the European Union.

"Any time you've got a successful investment overseas, your points of reference tend to expand, and your view of the world is somewhat larger," said James Burnham, a Duquesne University professor who specializes in trade issues.

U.S. Steel Chairman Thomas J. Usher was disappointed by Bush's decision to remove the tariffs, which were imposed to give the troubled industry protection while it reorganized. But Usher said the falling U.S. dollar and higher steel prices overseas would make it less likely that imports will hurt U.S. steelmakers in the near term.

Analysts agree the dollar's woes are the biggest reason that the tariffs lost their usefulness. But they also say the fact that more steelmakers have interests in overseas markets makes it harder for them to view trade issues strictly in black or white.

"Any really true global company -- U.S. Steel is not quite that yet but it is moving in that direction -- has to think broadly in terms of what they advocate and what they say," said BB&T Capital Markets analyst Lloyd O'Carroll.

Shortly after Bush imposed the tariffs in 2002, the European Union slapped import quotas on shipments from U.S. Steel's Slovak mill. A 16 percent surcharge was tacked onto the exports in July after U.S. Steel exceeded the quota.

Meanwhile, the treaty granting the Central European nation EU membership places restrictions on production and shipments from the Slovak mill.

EU officials and the Slovak government are trying to resolve a dispute over when the production limits would take effect. The steelmaker has said the outcome could reduce tax credits U.S. Steel gets at the Slovak mill or further restrict sales into the EU.

"I don't think [the EU] would be above playing hardball with U.S. Steel," Burnham said.

U.S. Steel spokesman Mike Dixon emphasized that the dispute was between the EU and Slovak officials. But he added that the company expected that the issue would be resolved quickly.

Overseas producers who have invested in U.S. producers face the same dilemma.

East Chicago, Ind.-based Ispat Inland, which like U.S. Steel wanted the tariffs kept in place for the three years Bush originally proposed, is a unit of an Anglo/Dutch holding company that has mills in Mexico, the Caribbean, Canada and Europe.