Steelworkers: U.S. tariffs a ‘potential industry killer’

Key Takeaways:

• The 25% U.S. tariffs on Canadian steel and aluminum are expected to have devastating effects on workers and communities in both countries, disrupting the industry and threatening jobs.
• Canadian steel producers are urging the government to impose tariffs on unfair imports from countries like China and to prioritize Canadian steel in publicly funded infrastructure projects to strengthen the domestic industry.
• Worker representatives view the tariffs as a direct attack on Canadian jobs and economic sovereignty, demanding wage subsidies, enhanced employment insurance, and strong retaliatory measures to protect workers and the economy.

The Whole Story:

As 25% tariffs go into effect on all Canadian steel and aluminum exported to the U.S., Canada’s industry is starting to feel the pain.

The size and scope of the industry is massive. In 2024, Canada exported approximately $7.1 billion USD worth of steel and $9.4 billion USD worth of aluminum to the U.S., accounting for 23% of total U.S. steel imports and 53% of total U.S. aluminum imports. While steel represents a significant portion of total U.S. imports, the country depends far more on Canadian aluminum to meet domestic demand.

Following the implementation of new U.S. tariffs, Canada swiftly responded by imposing countermeasures. These counter-tariffs, which took effect at midnight on Thursday, targeted $29.8 billion worth of U.S. goods, including steel, aluminum, computers, sports equipment, and cast-iron products.

François-Philippe Champagne, Minister of Innovation, Science and Industry, also directed Industry Canada to prioritize funding of projects that use predominantly Canadian steel and aluminum.

“Canadian steel and aluminum form the basis of North America’s critical infrastructure and manufacturing base, while supporting vital U.S. industries, including defence, shipbuilding and automotive,” said the minister. “They are also essential for securing our collective energy future and generate high-quality jobs on both sides of the border.”

“We will continue to stand strong for Canada, our workers, and our industries.”

Catherine Cobden, President and CEO of the Canadian Steel Producers Association (CSPA) explained that the announcement by President Trump of a 25% tariff on Canadian steel entering the United States has deeply damaged our mutually beneficial trading relationship.

Steel producers call for more industry support

“These tariffs will have devastating repercussions on both sides of the border for workers and communities that rely on a strong North American steel industry,” said Cobden. “Indeed, many are already feeling the impacts.”

Cobden praised Canada’s retaliatory tariffs, as well as ongoing efforts by government to resolve the trade war. However, she remained deeply concerned about the significant disruption and ongoing uncertainty being created by the United States for the industry. To build resiliency and long-term prospects for the sector in Canada, the association called on the government to act with urgency to address long standing concerns. Here’s what they want:

• Enact tariffs on all steel and steel derivatives from China and other known trade offenders to address unfair steel trade in Canada. Cobden said there remains significant levels of dumping and other unfair practices which erode the industry’s ability to compete.
• Asking all municipal, provincial and federal governments to step up and ensure they are prioritizing Canadian steel in all their publicly funded infrastructure projects.

Union says tariffs an ‘industry killer’

Worker representatives emphasized the massive impact the tariffs could have on Canadian jobs.

“These tariffs are nothing less than a potential industry killer,” said Marty Warren, United Steelworkers National Director for Canada. “It’s an economic attack on workers and our economic sovereignty. Trump’s protectionist charade is not about helping American workers but about using them as political pawns while jeopardizing jobs on both sides of the border. Canadian steel and aluminum workers will not be intimidated. We are ready to fight back and we will.”

The new measures, which extend to downstream products containing non-U.S. steel and aluminum, come on top of previous tariffs that have already placed massive strains on Canadian industry. While the existing tariffs are temporarily paused until April 2, if they take effect as planned, these combined tariffs will amount to 75% on steel and 60% on aluminum.

“This is a serious escalation in an unnecessary trade war with a trusted ally, and jobs and communities on both sides of the border hang in the balance,” said USW International President David McCall. “USW members across North America work together. We also fight together. And when it comes to beating back ill-advised trade policy that hurts us all, we will win together.”

He called on Canada to institute wage subsidies and enhanced employment insurance. He also stressed the importance of prioritizing domestic procurement and hit back at the U.S. with retaliatory tariffs on key industries.

“This isn’t just about steel and aluminum – this is about protecting Canada’s economy, its workers and its sovereignty,” Warren said. “We will not stand by while Trump uses our jobs as bargaining chips in his political game. Steelworkers will fight back on the shop floor, in the halls of government and in the streets if necessary.”

Steel tariff deja vu

During his first term as president, Donald Trump initiated a significant trade dispute with Canada over steel and aluminum imports. In March 2018, Trump imposed tariffs of 25% on steel and 10% on aluminum imports from most countries, including Canada. These tariffs were implemented under the justification of national security concerns. The dispute continued for about a year, affecting various industries and causing economic uncertainty on both sides of the border. In May 2019, nearly a year after the tariffs were implemented, the U.S., Canada, and Mexico reached an agreement to remove the tariffs and ultimately paved the way for the ratification of the United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA).