Canadian Design and Construction Report staff writer
Canadian steel producers and fabricators are calling on the federal government to take urgent action after the United States imposed a 25 percent tariff on Canadian steel and aluminum.
The move, announced in a new Executive Order signed by U.S. President Donald Trump, has sent shockwaves through the industry, raising fears of economic hardship, job losses, and a destabilized trade relationship.
Keanin Loomis, President and CEO of the Canadian Institute of Steel Construction (CISC), condemned the decision, calling it “unnecessary and unjustified.” He also raised concerns over Trump’s recent remarks about Canada’s economic viability and U.S. interest in annexation.
“The federal government needs to show leadership by working with the steel production and fabrication industries to develop a strategy that supports Canadian workers and businesses,” Loomis said. “The economic impact will be severe, and we must act now.”
The fear is tariffs will significantly increase input costs for Canadian steel companies, putting many at risk of closure. Unlike the 2018 steel tariff battle, this time Canada has fewer options for retaliation, and with nearly four years left in Trump’s term, the stakes are higher than ever.
Adding to the industry’s frustrations, billions of dollars in federal and provincial grants and tax credits have flowed to multinational corporations that choose to purchase steel from international suppliers rather than supporting Canadian businesses, Loomis said.
The CISC has outlined several urgent measures the Canadian government must take to safeguard the industry:
- Eliminate Steel Dumping: Canada must ensure that foreign competitors, particularly those accused of unfair trade practices like China, do not undercut domestic businesses. Environmental standards on imported steel should also match those placed on Canadian producers.
- Prioritize Domestic Steel in Public Projects: Publicly funded infrastructure projects should require the use of Canadian steel, and incentives should be created to encourage the private sector to do the same.
- Invest in Infrastructure: The federal government should commit to new infrastructure projects that exclusively use Canadian steel, supporting provinces, municipalities, and businesses that prioritize domestic production.
- Expand Export Markets: As the U.S. imposes tariffs on other countries, Canada has an opportunity to secure new trade deals with nations looking for alternative steel suppliers. The government must act quickly to establish agreements before competitors fill the gaps.
Industry leaders say government intervention is critical to prevent widespread layoffs and economic downturns in steel-producing regions.
“We need immediate action,” Loomis said. “The livelihoods of thousands of Canadian workers and the future of our industry are on the line.”
