Steel and aluminum prices are expected to increase by 40% under new tariffs invoked on Monday by President Donald Trump.
Similar tariffs in 2018 were blamed for “killing Canadian businesses,” the Commons Industry Committee was told at the time, per Blacklock’s Reporter.
“These reckless tariffs threaten tens of thousands of good-paying jobs and destabilize industries that are the backbone of Canada’s economy,” the Canadian Labour Congress said in a statement.
The tariffs were “a direct attack,” it said.
Similar 25% tariffs in a 2018 trade war had a far-reaching impact, according to the Department of Industry.
“Higher steel and aluminum prices increase costs for many users,” Paul Halucha, assistant deputy industry minister, testified at the time.
“The impact of the current North American trade climate on steel and aluminum goes well beyond the companies and the workers in this industry.”
Benchmark prices for hot-rolled steel coil increased from as little as US$571 per ton to as much as $1,000, the committee was told.
“The all-in price for aluminum surged more than 40%,” said Halucha.
Steel and aluminum mills employ 43,000 Canadians, by official estimate.
“It’s killing Canadian businesses,” said then-New Democrat MP Tracey Ramsey.
“Once they close, the chances of them being able to come back again are very, very slim.”
The industry committee in public hearings in 2018 documented job losses at factories big and small, from $40,000 in new costs for craft breweries to millions at manufacturing plants. Stephen Vezina, vice-president of sales for Mailhot Industries Inc., a hydraulic cylinder factory in St-Jacques-de-Montcalm, QC, said the firm paid $150,000 a month in duties.
“We’re thinking ourselves of our investment,” testified Vezina.
“We were thinking of our investment decisions and putting well-paid jobs at risk that we have in Canada.”
Ben Whitney, president of auto parts maker Armo Tool Ltd. of London, ON, said the company faced sharp increases in metal prices though it bought from Canadian suppliers.
“I’m paying 24 percent more for Canadian steel,” said Whitney.
“All the steel guys recognize what has happened to the market, and they are making good profits from me.”
“All of my suppliers raised their prices. Armo is paying 17% to 33% more than we were a year ago for steel of all types.”
Extra charges averaged $50,000 more per month, he said.