‘Impact will be devastating’: Hamilton’s mayor reacts to Trump threat to impose 25 per cent tariffs on steel

Coils of rolled steel are shown at the ArcelorMittal Dofasco facility in Hamilton, Ont., Thursday, Oct. 13, 2022. (L) (THE CANADIAN PRESS/Nathan Denette). Hamilton mayor Andrea Horwath appears on CP24. (R)

Hamilton mayor Andrea Horwath says a proposed 25 per cent tariff on Canadian steel and aluminum imports would be “devastating” for the city.

U.S. President Donald Trump is expected to announce the tariffs Monday in another major escalation of his trade policy overhaul.

• LIVE UPDATES: Trump imposes 25% tariffs on steel, aluminum

“Who knows what Trump is going to announce today, who knows what the timing might be, but the destabilization that this president is causing for my community is already devastating,” Horwath told CP24 in an interview Monday.

Hamilton is Canada’s biggest steel producer and its two largest plants – ArcelorMittal Dofasco and Stelco – employ nearly 6,000 people in the city.

“People are worried about their jobs, they’re worried about their families, they’re worried about being able to make ends meet,” Horwath said, adding that the proposed tariffs would cause a nearly $1 billion hit to the local economy.

Horwath said she’s spoken to the federal government about Trump’s threats and supports retaliatory tariffs.

“We can’t just sit back and let the president of the United States devastate our economy. I support fighting back against the tariffs. Whatever [that looks like] I think we need to be there, pushing for our economy.”

Hamilton’s mayor also said a broader impact will be felt on the city’s economy if a 25 per cent tariff on steel takes effect and jobs are lost or diminished significantly.

“The impact on Hamilton will be devastating. It is going to be very, very difficult for our city for a sustained period of time if those tariffs do come to pass.”

‘Totally unnecessary’ Doug Ford says of latest U.S. tariff threats

Horwath’s comments about a potential tariff on Canadian steel and aluminum imports come as Ontario Premier Doug Ford continues to speak out about trade actions targeting Canada on U.S. television networks.

Speaking on CNBC’s ‘Power Lunch’ on Monday, Ford said the latest threatened tariffs amount to an attack on the “closest friends and allies” of the United States.

“These tariffs are going to hurt both countries mark my words,” he said. “[It’s] the last thing we want to do, but we will retaliate. But I can assure you that when we retaliate, the Americans will feel the pain and for what reason?”

Earlier, Ford said he spoke with the CEOs of Stelco and ArcelorMittal Dofasco about the looming tariffs and said he will wait until Trump’s formal announcement before deciding what Ontario’s response will be.

• READ MORE: Provincial party leaders say they’ll stand up for Ontarians as Trump set to announce new steel/aluminum tariffs

The National Director of the United Steel Workers of Canada (USWOC) also reacted to the impending steel and aluminum tariffs Monday, writing in a statement that the tariffs “are a direct attack on workers and communities.”

In 2018 during his first term as president, Trump imposed 25 per cent tariffs on steel and 10 per cent tariffs on aluminum before later granting exceptions for Canada and Mexico.

“We’ve been through this before and we know these kinds of reckless trade measures don’t work, hurt workers, destabilize industries, and create uncertainty across the economy on both sides of the border.”

The USWOC says $20 billion worth of steel is traded between Canada and the U.S. every year.

Toronto budget proposal calls for relief for industrial businesses

Meanwhile, Beaches–East York Coun. Brad Bradford says he’s proposing a 25 per cent property tax cut for industrial and small businesses in light of Trump’s latest tariff threats.

Speaking at Leland Industries in Scarborough Monday, Bradford said his motion would offer relief to nearly 3,500 industrial businesses in Toronto.

“The way we protect ourselves against this threat is by making Toronto the most attractive city in the world to build a business,” said Bradford. “That means lowering taxes to make Toronto more competitive with the U.S. to give our businesses a fighting chance and to stand up for the more than 125,000 manufacturing jobs located right here in the city.”

Bradford said that under his proposal, 30,000 small businesses would also receive a 25 per cent property tax cut. That would be accomplished by expanding Toronto’s existing Small Business Property Tax Subclass.

His proposal would amend Mayor Olivia Chow’s budget, which will be considered by city council on Tuesday.

“As to precisely how [the steel and aluminum tariffs] impact the city of Toronto, we need analyse it,” Chow said at a media availability Monday. “We have to be very strategic because it’s going to be a chaotic four years. We have to know precisely what we are reacting to, and we have to target our support in the most intelligent way.”