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Canada’s steel industry has raised alarms concerning potential job losses, factory slowdowns, and supply chain disruptions after U.S. President Donald Trump increased tariffs on imports to 50 percent. This recent tariff hike has provoked anger in Canada, where Prime Minister Mark Carney had previously sought to mend relations after the U.S. imposed heavy levies on its major trading partner.
As the largest supplier of steel and aluminum to the U.S., Canada contributes nearly a quarter of U.S. steel imports in 2023 and about half of aluminum imports from the previous year. Catherine Cobden, president of the Canadian Steel Producers Association, emphasized the severity of the situation, stating that a 50 percent tariff poses a catastrophic challenge. The steel industry in Canada, valued at C$15 billion (US$11 billion), employs 23,000 people and supports an additional 100,000 indirect jobs.
The tariffs are expected to cause widespread disruption and adverse effects within the deeply integrated steel supply chains on both sides of the border. Prime Minister Carney had traveled to the White House recently, aiming to improve relations that had deteriorated due to Trump’s previous threats and tariffs. During discussions, the possibility of renegotiating the US-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement, was considered.
President Trump, speaking at a rally in West Mifflin, Pennsylvania, announced the decision to double steel and aluminum tariffs, intensifying the global trade conflict. Cobden highlighted that the measure effectively blocks the U.S. market to Canada, potentially leading to irreversible consequences. The Aluminium Association of Canada indicated they are awaiting more formal legal confirmations before commenting on the impacts.
Dominic LeBlanc, Canada’s International Trade Minister, affirmed the country’s commitment to defending its workers and communities. LeBlanc stated that Canada would strive to secure the best possible outcome in its economic and security relationship negotiations with the United States.
The tariffs were announced shortly after Trump suggested that Canada could join a missile defense initiative for $61 billion or become the 51st U.S. state for free. A spokesperson reiterated Prime Minister Carney’s assurances to President Trump that Canada remains a sovereign nation.
The U.S. president announced the tariffs amidst promises of a $15 billion partnership between Nippon Steel and U.S. Steel. These levies will be implemented soon, as confirmed by the president in a post on Truth Social.
Earlier in the week, a U.S. federal appeals court had paused a ruling that declared some of Trump’s tariffs illegal. In response, Canada pledged a “dollar-for-dollar” counter to the U.S. tariffs, affecting steel, aluminum, and other goods. These measures build on previous retaliatory levies and have been adjusted recently to accommodate some U.S. industries.
Canada’s ministers and provincial leaders are set to meet in Saskatoon, Saskatchewan, as part of Carney’s strategy to reduce economic dependence on the United States. Marty Warren, the national director of United Steelworkers in Canada, criticized the tariffs as a direct attack on Canadian industries and workers. He urged immediate and decisive action to protect jobs and communities reliant on these sectors.
Goldy Hyder, president of the Business Council of Canada, advised against reacting hastily to Trump’s tactics, emphasizing the importance of focusing on renewing the USMCA and not being swayed by shifting demands.
