JFK and his administration helped negotiate a noninflationary wage agreement in the steel industry in early 1962. The assumption was that the companies, for their part, would keep the lid on prices. But almost immediately steel management announced significant price increases, thereby seemingly demonstrating bad faith
authorizing tariff cuts of up to 50% to promote trade with Common Market countries
the steel episode provoked fiery attacks by big business on the New Frontier, but Kennedy soon appealed to believers in free enterprise when he announced his support of a general tax-cut bill. He rejected the advice of those who wished greater government spending and instead chose to stimulate the economy by slashing taxes and putting more money directly into private hands. When he announced his policy before a big business group, one observer called it "the most Republican speech since McKinley"