Disappointment, but no shock in Hamilton as tariff deadline passes without a deal

Hamilton Spectator

5 days ago

A deadline that could have spelled the end of an ongoing trade war with the United States has passed with no agreement — and increased across-the-board tariffs on Canadian goods.
U.S. President Donald Trump's increased 35 per cent tariffs — up from 25 per cent — came into effect Aug. 1 and apply to goods not included in the Canada-United States-Mexico Agreement (CUSMA).
The move, the U.S. government said, is due to 'Canada's lack of co-operation in stemming the flood of fentanyl.'
Most Canadian goods meet the terms dictated by CUSMA, meaning they are not hit by the tariffs, which are separate from those targeting specific sectors.
However, tariffs impacting Hamilton's steel industry — as well as aluminum and copper tariffs — remain unchanged at 50 per cent. Trump doubled them to 50 per cent in June, after previously hitting the Canadian industries with 25 per cent tariffs.
Ron Wells, the president of the United Steelworkers Local 1005, which represents around 600 workers at Stelco's Hamilton site, said while he is disappointed a deal wasn't reached, it 'wasn't a shock.'
Ron Wells is president of the United Steelworkers Local 1005, which represents about 600 workers at Stelco's Hamilton site. While he is disappointed a tariff deal wasn't reached before the Aug. 1 deadline, he said it wasn't a shock.
'This is the new normal,' he said of the tariffs, adding he was 'not really hopeful' about the potential for a deal in the lead-up to the deadline — particularly after Trump suggested Canadian plans to back Palestinian statehood at the United Nations would make it 'very hard to reach a deal.'
Since the deadline has passed, Wells said Canada should hit back against the United States and match American tariffs on steel and aluminum, doubling them to 25 per cent.
That echoes the sentiment of Ontario Premier Doug Ford, who called on the federal government to 'hit back' with a 50 per cent tariff on U.S. steel and aluminum in a post on X.
'The federal government needs to maximize our leverage and stand strong in the face of President Trump's tariffs,' Ford posted.
Wells said he is hopeful measures announced by the Liberal government in July — including caps on imported steel, stiff tariffs if those caps are exceeded, prioritizing the use of Canadian steel in government procurement and $70 million in new funding over three years to help steel workers get retrained — help Canadian steelmakers.
Hamilton Chamber of Commerce CEO Greg Dunnett said Hamilton may be the community that is 'getting hit the hardest' in Canada, due to the continued steel and aluminum duties – in addition to the new 35 per cent tariffs.
Hamilton Chamber of Commerce CEO Greg Dunnett said Hamilton may be the community that is 'getting hit the hardest' in Canada, due to the continued steel and aluminum duties — in addition to the new 35 per cent tariffs.
He noted creating a fair long-term deal is 'very, very difficult' due to the 'moving goalposts' from Trump.
'I think it is imperative of our government right now to be strategic,' he said, adding the government should work to strengthen the economy, diversifying trade within the country to move Canada forward in the long-term without a dependence on the U.S.
'Escalation is risky, but so is inaction.'
He said the tariffs have been disruptive, bringing uncertainty and cost increases across the board — which is impacting jobs, investment and trade relationships. While he said Hamilton is 'resilient,' the longer the trade war drags on, the more difficult it will get for businesses.
Dunnett noted the uncertainty due to the tariff situation is hurting innovation due to a lack of investment, and the chamber continues to advocate to all levels of government for support for the local business community. He added among the businesses hardest hit are restaurants, whose business drops when customers have less disposable income.
Canadian Chamber of Commerce president and CEO Candace Laing said spending 'a little more time' on the right deal is worth the wait because it can 'deliver lasting benefits.'
However, Laing stressed businesses in Canada and the U.S. 'urgently' need more certainty.
Keanin Loomis, the president of the Canadian Institute of Steel Construction (CISC), said while he was hopeful for a deal, comments from the government and Prime Minister Mark Carney had made it clear negotiations were difficult.
Prime Minister Mark Carney and Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction, chat with employees of Walters Steel during a July funding announcement for the steel industry.
'We will give our government the time and space it needs to make a good deal, because we don't want them to rush into a bad deal,' he said. While there is disappointment the situation is ongoing, Loomis said 'everyone in Canada' likely understands the difficulty of dealing with the Trump administration.
Loomis said the increase of tariffs from 25 to 35 per cent is somewhat 'token' when all CUSMA trade is tariff-free — and shouldn't cause 'major concern' in the broader economy.
However, he said the ongoing 50 per cent U.S. tariffs on steel and aluminum are 'not sustainable' for the industry — and something needs to change in the next couple of months.
'It would be really hard to see us being able to continue this way into the fall,' he said.
While noting he doesn't speak for ArcelorMittal Dofasco and Stelco, he said he's 'really concerned' for them, adding it is alarming how much the steel producers have dealt with due to the tariffs.
But for the CISC members, he said while some have suffered already, many are still working on previously arranged projects. The concern, Loomis said, is what happens in six months, as the tariff uncertainty means a lack of long-term investments — and future jobs for the industry.
John McElroy, the United Steelworkers local union president at Stelco's Nanticoke steelmaking hub, said he had hoped for a resolution to the tariff war by now.
McElroy said he and other USW local presidents were able to speak privately with Carney and share their concerns during his most recent visit to Hamilton.
'He basically told us, 'I could sign a deal now, but it would be a crappy deal,' recalled McElroy. 'I understand that.'
McElroy added Stelco seems to be holding its own despite 50 per cent tariffs, thanks in part to higher steel prices and success finding new Canadian customers. 'We're kind of weathering the storm for now.'
—With files from Matthew Van Dongen