‘All our exports have stopped': Canadian steel industry amid US tariffs

Economic Times

5 days ago

ETMarkets.com Canada warns steel sector needs urgent support to survive as U.S. tariffs choke exports; 'Basically all our exports have stopped,' says industry official
Canada's federal government is stepping up efforts to shield its embattled steel sector as new US tariffs throttle exports and stoke economic uncertainty.
Industry Minister Mélanie Joly warned this week that without direct government support, the Canadian steel industry may not be able to survive.
'Survival, and I think eventually, much more than that, the fact that they can thrive,' Joly said Thursday(July 17) on The Vassy Kapelos Show, as she outlined the urgent need for intervention.
Joly also says the government is considering broader steps, including the use of Canadian steel in shipbuilding, defence procurement, and major infrastructure projects. 'We need to support them as we're creating a much more domestic market for them,' she said. Beyond economics, Joly framed steel as a national security issue, noting Canada's commitment to meeting NATO defence spending targets.
Since March, the United States has imposed steep duties on Canadian steel and aluminum, starting with a 25 percent tariff that doubled to 50 percent in June under an executive order from President Donald Trump.
According to François Desmarais of the Canadian Steel Producers Association, steel shipments to the US have plummeted by 25 percent, with nearly 1,000 Canadian jobs lost in March alone.'Basically, all our exports to the US have stopped,' Desmarais said in a separate interview on Wednesday.For workers like Mike Tremblay, who has spent 22 years at a Hamilton steel plant, the anxiety is growing. 'People are scared. I've got two kids in university and a mortgage. If this keeps going, I don't know what happens next,' he told CBC News.
In a bid to stabilize the sector, Prime Minister Mark Carney announced new measures Wednesday, including fresh tariffs on steel originating in China and adjusted import quotas. The move, aimed at countering foreign dumping and strengthening domestic production, was welcomed by labor groups.The United Steelworkers union called it a 'major win for workers,' citing the changes to tariff-rate quotas as key to preventing job losses.But concerns remain. 'Diversifying the domestic market is important, but it won't replace US demand,' said Desmarais, warning that global overcapacity still poses a threat.Meanwhile, trade talks with Washington remain tense. While Prime Minister Carney and President Trump had initially aimed to reach a new Canada-US economic agreement by July 21, that deadline has now been pushed to August 1. Trump is threatening additional tariffs of 35 percent on Canadian imports, though a White House official told CTV News these would not apply to goods compliant with the Canada-US-Mexico Agreement (CUSMA).Pressed on whether the federal government will compromise to avoid further economic harm, Joly said Ottawa won't bargain in public. 'We will make sure that we don't negotiate in public,' she said. 'It is important that we stand strong. It is important that we defend Canada and Canadians' interests.'