Tariff tumult creates challenges for northern steelmakers

Threats of double tariffs on Canadian steel and aluminum led to more uncertainty for steelmakers in Sault Ste. Marie on Tuesday.

While much uncertainty remains, the United States has withdrawn its threat to impose double tariffs on Canadian steel and aluminum.

The news comes after Ontario Premier Doug Ford announced earlier Tuesday he was withdrawing tariffs on electricity exported south of the border.

At Algoma Steel in Sault Ste. Marie, where more than two dozen people have already been laid off due to the trade war, officials said they continue to monitor the situation.

“The North American steel market is highly integrated and Algoma Steel is deeply concerned with any tariffs imposed by the U.S.,” the company said in a statement.

“The Algoma team remains in close consultation with our customers and the government regarding the challenges this will present to our business. Algoma is advocating for swift government action at both the federal and provincial level to support Algoma and the Canadian steel and aluminum industries during this volatile time.”

Officials with the Sault’s other steelmaker, Tenaris, said they are determining a response to the quickly-changing situation.

“The tariffs imposed on steel and aluminum are fluid and constantly changing day by day,” Tenaris said in a statement.

“When we have a defined regulatory framework, we will analyze the geopolitical situation and the potential impact to our operations, preparing a strategy to respond.”

Officials with United Steelworkers Local 2724 said with some layoffs already in effect, they are focused on support from the government, especially if more pink slips were to come.

“I think we also need to be making sure that we’re providing support for all the employees, I think is very important,” said Local 2724 President Bill Slater.

“We have members laid off right now … what is the government going to do in the long term to help the employees and help the Canadian citizens get through this?”

Ford headed to the U.S.

After changing course on electricity export tariffs, Ford said he’ll head to the U.S. to meet with the American Commerce Secretary, along with other Canadian delegates, to discuss a renewed trade deal with the United States, Mexico and Canada.

Sault Mayor Matthew Shoemaker said it’s vital that a way is found to end the uncertainty.

“I think opening up USMCA based on these conversations or these statements that the premier’s just put out is critical if it will provide us certainty over the next four years,” Shoemaker said.

“The challenge is we’ve got nothing to give us any comfort that what the president says today is going to be the case tomorrow, because every day it changes.”