Canada’s latest round of retaliatory tariffs on American goods is adding uncertainty to a steel industry already caught in the cross-border trade war, with Ottawa-area businesses warning the impact could ripple through the supply chain. At AMBICO in Ottawa, raw steel is turned into specialized doors, including products built to withstand bullets, blasts and block out sound. “We sell those products largely to governments both in the U.S. and Canada,” said AMBICO CEO Jack Shinder. So far, the company’s finished products have been protected from U.S. tariffs under CUSMA. But Shinder says the latest round of U.S. levies could change that, with 70 per cent of the company’s products sold south of the border. “If we are subject to 50 per cent tariffs on our outbound material, some of that goodwill is going to dissipate very quickly,” he said. The company is already dealing with higher steel prices. “The world price has basically gone up by the amount of the tariff,” Shinder said. “So, everybody who’s making steel, let’s say they were selling it for a dollar a pound, they’re now selling it for $1.50 a pound.” Canada has also announced retaliatory tariffs, including 50 per cent levies on certain U.S. steel and aluminum products. That could mean Canadian companies pay more for some materials imported from the United States. “We’re kind of living day-to-day with these things because the political situation does change day-to-day,” said Schinder. Local steel suppliers tell CTV News they are already dealing with shortages and higher prices. At the same time, tariffs could result in more Canadian steel staying in the domestic market rather than being exported south, potentially increasing supply at home. The longer-term question is what prolonged trade pressure could mean for Canadian steel mills and how much they are able to produce. The uncertainty is also being felt in Ottawa’s construction industry, where steel and aluminum are used across a wide range of products and equipment. The Ottawa Construction Association says contractors will be taking a closer look at where those products come from and whether some components can be sourced elsewhere. “We will most definitely be looking other places from where you can source certain types of components that have to go into a new build,” said executive director Bill Ferreira. “But the reality is this will obviously have implications for the industry.” Canada’s retaliatory tariffs are set to come into effect Sept. 8.
