Canadian Steel Industry Calls for Plan Amid U.S. Tariff Crisis

The Canadian steel industry is urging the government to develop a strategic response to the impact of U.S. tariffs on its sector. In March 2023, the U.S. imposed a 25 percent tariff on Canadian steel and aluminum, prompting Canada to retaliate with an equal 25 percent tariff on American imports. By June 2023, the situation escalated as the U.S. doubled its tariffs on Canadian products to 50 percent. Canadian Industry Minister Mélanie Joly has publicly stated the government’s commitment to support local steel and aluminum workers, emphasizing the importance of retaliatory measures.

Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction, voiced his concerns about the tariffs during a recent interview with CTV News Channel. He highlighted the anxiety within the industry and the potential for job losses, 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 stressed the need for a focus on domestic procurement to ensure that Canadian taxpayers’ money is used to support local fabricators and steel producers.

In May 2023, Minister Joly reiterated the government’s position in a post on X, affirming that Canada is actively fighting the tariffs with its own retaliatory measures. “Our steel and aluminum workers and businesses deserve no less than our full commitment,” she stated. Loomis noted that while many Canadian steel producers have managed to avoid layoffs so far, the long-term effects of the tariffs could jeopardize their operations.

He remarked, “This might be the thing that puts us over the edge and calls into question the short to mid-term sustainability of our operations.” Loomis continues to engage with U.S. counterparts, indicating that many within the United States oppose the tariffs. He explained, “Everybody in the U.S. knows that tariffs are attacks… only a couple entities, these are steel producers in the U.S. who have outsized influence with the Trump administration, are going to be benefitting from this, at the expense of the rest of the U.S. and Canadian economy.”

Loomis emphasized that change will need to come from within the U.S. He expressed hope that Canadian efforts could help Americans recognize the broader economic ramifications of the tariffs. “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,” he concluded.

The ongoing trade tensions have raised significant concerns for the Canadian steel industry, highlighting the need for a coordinated response to secure its future in an increasingly competitive market.