The threat of a trade war between Canada and the US has again reached a new urgency after President Donald Trump announced 25 percent tariffs on all steel and aluminum imports into the US with no exceptions.
Even though his tariffs on all Canadian and Mexican products have been put on hold for about a month, the new tariffs would be stacked on top of those, which means Canadian steel could be hit with a 50 percent levy, and aluminum 35 percent.
Prime Minister Justin Trudeau says the move is unjustified, and steel and aluminum producers north of the border are bracing for what could be a devastating slowdown.
Trudeau is in Europe trying to strengthen Canada-EU trade ties as both sides of the Atlantic face tariff threats from Washington. When Trump introduced similar tariffs in 2018, Canada retaliated during negotiations on a free trade agreement and received an exemption.
Trump has said there will be no exceptions. Trudeau, speaking from Brussels, stopped short of committing to a dollar-for-dollar retaliation this time, but left little doubt that Ottawa would fight back.
“Tariffs on Canadian steel and aluminum would be entirely unjustified. We will be working with the American administration over the coming weeks to highlight the negative impacts on Americans and Canadians of these unacceptable tariffs,” Trudeau said.
Trudeau also says his government will stand up for Canadian workers and industries. He also met briefly with Vice President JD Vance on the sidelines of an Artificial Intelligence summit in Paris, and officials say he warned Vance the tariffs would have an impact on Vance’s home state of Ohio.
But in Canada, there is again confusion and anxiety over the new announcement from Trump, especially in steel-producing communities like Hamilton, home to companies such as Stelco and Dofasco.
John Catto is with the United Steelworkers union in Hamilton, he has concerns over what the tariffs would do to the Hamilton steel industry.
“It would have a devastating effect on our workplaces. It would have a devastating effect on our members. And I mean that’s a big concern. And we obviously have a very integrated trade relationship with the United States and in some cases, some of that steel and aluminum crosses the border two or three times before it makes its way to the final product,” Cato said.
Also concerned about the latest announcement from Trump, is Andrea Horvath, the mayor of Hamilton.
“People are worried about their jobs, they’re worried about their families, they’re worried about being able to make ends meet. That’s about a billion-dollar hit to our local economy. That’s big,” Horvath said.
From the Canadian Steel Producers Association. President and CEO, Catherine Cobden also has thoughts on the prospect of the heavy tariffs.
“We think the suggestion of putting tariffs on Canadian steel of 25 percent is egregious, and we actually have a strong track record to prove that,” Cobden said.
Keanin Loomis is the president and CEO of the Canadian Institute of Steel Construction. He also worries about the impact the tariffs will have on the city of Hamilton.
“There are thousands of jobs that rely on the production of steel in this community, that support tens of thousands of other jobs as well. So, a huge economic impact. We make a lot of steel in this city,” Loomis said.
Companies in Quebec are also worried. The province produces about 90 percent of Canada’s aluminum, with most of it going to the US.
This week a delegation of all of Canada’s Provincial Premiers is in Washington to try to persuade the Trump administration that tariffs are a bad idea. That the latest tariffs would impact manufacturing industries in defense, shipbuilding, and auto-making on both sides of the border.
But these arguments have been made before, without convincing Trump to change his mind.
