Canadian Steel Industry Demands Action Against U.S. Tariffs

The Canadian steel industry is calling for a strategic response to the escalating impact of U.S. tariffs on Canadian steel and aluminum. In March 2023, the United States imposed a 25 percent tariff on these materials, prompting Canada to retaliate with a corresponding 25 percent tariff on American products. By June, the U.S. doubled its tariffs to 50 percent, further straining relations between the two countries.

Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction, has emphasized the urgent need for a coherent plan to address these trade challenges. Loomis expressed concern over the anxiety surrounding potential job losses within the industry, stating, “We do have to stay strong and certainly exact as much pain as we can from the United States on this, but certainly we need a plan.”

Loomis advocates for prioritizing domestic procurement as a way to bolster the Canadian steel sector while maintaining access to U.S. markets. He highlighted the importance of ensuring that government-funded infrastructure projects utilize Canadian fabricators and steel whenever possible.

In a statement made in May, federal Industry Minister Mélanie Joly reiterated Canada’s commitment to defending its steel and aluminum workers. Joly stated on social media platform X, “Our steel and aluminum workers and businesses deserve no less than our full commitment.”

The ramifications of U.S. tariffs have already begun to ripple through the Canadian industry. Loomis noted that while many Canadian steel producers have been cautious about laying off workers, the ongoing tariff situation poses a significant risk to the sustainability of their operations. “I know that many of the steel producers in Canada have been really adamant to not lay off parts of their workforce, and thus far, we haven’t seen a lot,” Loomis added. “But this might be the thing that puts us over the edge.”

Despite the challenges, Loomis continues to engage with U.S. counterparts, believing that the resolution must originate from within the U.S. “Many of them do not agree with this,” he said. He pointed out that tariffs serve as attacks on both economies, primarily benefiting a small number of U.S. steel producers with significant influence over the current administration.

Loomis concluded that it is crucial for Canadians to help Americans recognize the broader economic consequences of these tariffs, stating, “The change is going to come from the inside. It’s hard for us as Canada to exert the type of pressure that we need, but we can help Americans wake up to the fact that this is punishing them as much as it is us.”

As the situation develops, the Canadian steel industry remains vigilant, seeking a balanced approach to navigate the complexities of international trade while advocating for its own economic interests.