President Trump’s latest tariff threat could be devastating for Canada’s steel and aluminum industries. Trump has vowed to double the 25% tariffs on those sectors to 50% as of Wednesday.
Even though critics say doubling the tariffs on steel and aluminum is a reckless move, President Trump says his decision will help American producers.
“We are going to be imposing a 25 percent increase,” Trump said. “We’re going to bring it from 25 percent to 50 percent the tariffs on steel into the United States of America, which will even further secure the steel industry.”
The move threatens huge disruptions in Canada, which is one of the main exporters of steel and aluminum to the US. Last year Canadian producers shipped $7.6 billion worth of iron and steel to the U.S. Catherine Cobden, President of the Canadian Steel Producers Association says a doubling of the tariffs would be devastating.
“It essentially means that the US market closes overnight for us. That means in simple terms, 50 percent of what we produce, heads to the United States. So, that market will just shut instantly,” Cobden said.
Feeling the effects first will be cities where the industry has a presence, where many who work in the sector could lose their jobs. Here’s the Mayor of Brampton, Ontario, Patrick Brown.
“I think it’s going to kill jobs in Canada and the United States. I know in Brampton we have a steel and aluminum sector that is going to see job losses. I would note that our Stellantis plant has already paused production, and so there are thousands of auto jobs that are in limbo right now. So, there is real economic pain that is being caused by the constant changes and economic attacks that we’re seeing from Washington,” Brown said.
The Premier of Quebec Francois Legault is calling the latest tariff threat completely unjustified. Ontario Premier Doug Ford said his government is vowing to ‘onshore every single widget we can’.
And businesses that rely on aluminum, like Kichesippi Beer Company, say they will have no choice but to increase prices for canned beer. Paul Meek is the president and owner.
“We will have to figure out how much we can absorb. But it will be impossible for us to absorb that whole increase. We will unfortunately have to increase prices, which is going to affect sales,” Meek said.
Construction projects too will be affected – with some possibly going on hold. The industry is calling on the federal government in Ottawa to retaliate. The Mayor of Sault Ste. Marie, a big steel town, Matthew Shoemaker said, needs help now.
“The time to map out what the strategy could be in two months or three months is not enough time,” Shoemaker said. “We don’t have the luxury of that amount of time. We need an action plan within the next seven to ten days.”
The government of Prime Minister Mark Carney is considering its response. Industry minister Melanie Joly says Ottawa is committed to using Canadian steel and aluminum in national infrastructure and defense projects. She says the government is also waiting to see if Trump follows through with his latest threat.
