'A 50% tariff would completely shut us out of the U.S. market'
Canadian labour groups are raising strong objections to U.S. President Donald Trump's plan to double tariffs on all steel and aluminum products entering the United States.
Starting June 4, the U.S. will increase its tariff rate on imported steel and aluminum from 25% to 50%, according to a report by the BBC.
Trump claims the move is intended to bolster the domestic steel industry and national supply, while reducing reliance on Chinese imports.
A number of Canadian companies started laying off workers after Trump imposed tariffs on Canadian steel and aluminum products back in March.
Unions call for government action on tariffs
And this latest development sparked renewed concern in Canada.
"A 50% tariff would completely shut us out of the U.S. market," says Marty Warren, United Steelworkers National Director for Canada. "This isn’t trade policy – it’s a direct attack on Canadian industries and workers. Thousands of Canadian jobs are on the line and communities that rely on steel and aluminium are being put at risk. Canada needs to respond immediately and decisively to defend workers."
Without an exemption for Canada, the new tariffs will “severely further disrupt integrated North American supply chains” and “threaten tens of thousands of good union jobs, both directly and indirectly,” particularly in sectors such as manufacturing, automotive, defence, aerospace, and construction. Canada remains the largest supplier of steel and aluminium to the U.S., according to the union.
"Workers in Canada’s steel and aluminium industries have already been hit hard by months of uncertainty. Now their livelihoods are being threatened again," Warren added. "We need more than statements. We need concrete action — and we need it now."
Catherine Cobden, president and CEO of the Canadian Steel Producers Association (CSPA), echoes the criticism, warning that the increased tariffs would lead to “mass disruption and negative consequences across our highly integrated steel supply chains and customers on both sides of the border.”
She urged the federal government to respond with urgency. “It is vital that the Government of Canada responds immediately to fully re-instate retaliatory steel tariffs to match the American tariffs and to implement as quickly as possible new tariffs at our own borders to stop unfairly traded steel from entering Canada,” Cobden says.
Protecting Canada's workers
Bea Bruske, president of the Canadian Labour Congress (CLC), also calls for “immediate government action to protect workers.” She outlines several measures needed in response:
- Emergency reforms to Employment Insurance (EI) that actually support laid-off workers when they need it most,
- The immediate expansion of Section 53 measures to give the government the flexibility to act swiftly in protecting key sectors.
- A clear commitment that nation-building projects under the upcoming One Canadian Economy legislation prioritize Canadian steel as a condition for fast-tracking approval, and
- Wage subsidies and other targeted measures to keep workers on the job and businesses operating.
“Canada must respond with strength and urgency. Workers cannot be left to face the fallout alone,” says Bruske.
“We need a government that is prepared to stand up for Canadian industries, invest in good union jobs, and protect our economic sovereignty in the face of growing international uncertainty.”
Already, more than three-quarters (76 per cent) of Canadian business leaders are bracing for the worst and taking steps to prepare for a potential recession, according to a previous KPMG report.
