Winnipeg steel company makes changes to deal with tariffs
Brunswick Steel in Winnipeg is changing its buying habits.
The business makes parts for customers, many in the agriculture sector.
With U.S. tariffs on steel at 50 per cent, general manager Adam Plouffe said they have had to adjust where they source their products.
'For us what it did, it shifted all of our purchases to non tariff countries,' said Plouffe. 'So we're buying in Canada predominantly. We are buying some imports from other countries that are non tariff related.'
But buying overseas can increase shipping time so the company has had to stock up.
Plouffe said business is down about 12 per cent compared to last year. In order to keep all their staff, they've implemented a federal work-sharing program. The company pays for seven hours of an eight-hour day, and EI takes care of the last hour.
'We don't like it, okay. I'll be very clear about it,' said Plouffe. 'It is something that we hesitated doing. It's not a fun thing to do for our staff, for anyone.'
President Donald Trump has also announced 35 per cent tariffs on other Canadian goods starting August 1, as the two countries try to hammer out a trade deal.
Last week Prime Minister Mark Carney announced a new policy to restrict and reduce steel imports in an attempt to help Canada's steel industry.
Plouffe said that is a step in the right direction.
'Those protectionist things, we need to do in Canada,' said Plouffe.
He also said opening the Canadian market is important.
'We're big consumers in Canada as well.'
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