Steel Industry Urges U.S. Government Intervention Amid Rising Tariffs to Protect Domestic Manufacturing
Canadian steel industry warns of catastrophe as U.S. doubles tariffs to 50%, threatening thousands of jobs and prompting calls for immediate government action.
The Canadian steel industry is sounding the alarm after the United States imposed a dramatic increase in tariffs this week, doubling them on imported steel and aluminum products to 50 per cent. Industry leaders warn that the move, announced by U.S. President Donald Trump, could have catastrophic consequences for Canadian steel producers who have long relied on access to the American market.
Catherine Cobden, president of the Canadian Steel Producers Association, described the situation as a crisis requiring immediate federal intervention. “Time is of the essence,” she emphasized, noting that the new tariff levels are so high they will “essentially shut down” exports to Canada’s largest trading partner. The association confirmed that some companies were forced to halt deliveries, stopping trucks already en route to the border when news of the decision broke. “At these tariff rates, it just no longer makes financial sense to export to the U.S.,” Cobden explained.
Canadian steelmakers had already been feeling the strain under the previous 25 per cent tariff, which had been in place since March. According to Cobden, the sector has already lost roughly 700 jobs and shipments in April dropped by 30 per cent. She now warns that the new 50 per cent tariff constitutes an “existential threat” to an industry that has historically sent half its total production south of the border. “We’re facing the very real possibility that Canadian steel production could grind to a halt if nothing changes,” Cobden said.
Industry leaders are calling on the federal government to act quickly to protect Canadian producers. Cobden argues that Canada should introduce its own countermeasures, including higher tariffs at the border to defend against a surge of artificially cheap steel imports originating from China. While Canada did implement a 25 per cent tariff last October targeting direct imports of steel and aluminum from China, Cobden stressed the need to expand these measures to include steel “melted and poured” in China that is later processed in other countries before reaching Canadian shores. Without broader protections, she warned, the domestic market could be flooded with subsidized steel, compounding the pain already inflicted by the U.S. tariffs.
With thousands of jobs and the future of a key manufacturing sector on the line, the next steps taken by Ottawa will be watched closely by communities across the country. For now, affected workers and businesses are bracing for uncertainty as the industry faces one of its most serious challenges in decades.
