Ottawa commits to prioritizing domestic aluminum and steel for defence, infrastructure projects

National Post

2 days ago

Ottawa is committed to using Canadian steel and aluminum in national infrastructure and defence projects as U.S. President Donald Trump threatens to impose more tariffs, Industry Minister Melanie Joly said Sunday.
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After meeting with aluminum industry leaders at a summit in Montreal, Joly said the government is waiting to see if Trump follows through on his threat to increase steel and aluminum tariffs to 50 per cent through an executive order.
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The United Steelworkers union welcomed Joly's announcement Monday.
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The union's national director, Marty Warren, said in a media statement the organization has 'consistently called for strong Buy Canadian policies to protect good jobs and rebuild domestic supply chains, especially in the face of a worsening trade war and unfair global competition.'
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Warren said his organization will be watching to ensure the federal government follows through on its promise to use Canadian metals.
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'That means clear, enforceable rules that actually prioritize Canadian-made materials — starting with steel and aluminum, but also including wood, critical minerals and other key sectors. This must be the beginning, not the end, of a broader industrial strategy that supports Canadian jobs and production,' he said.
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The Liberals campaigned in the recent election on 'maximizing' the use of Canadian steel, aluminum and forestry products in public projects.
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In March, Trump imposed 25 per cent tariffs on steel and aluminum imports to the United States. Canada is the largest steel supplier to the United States, accounting for nearly 25 per cent of all imports in 2023.
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The tariffs are putting strain on Canadian metal producers and others throughout the metals supply chain.
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Last week, aluminum trader Sinobec Group Inc. filed for creditor protection, blaming the tariffs — as well as the wider political landscape and a weak market — for its financial troubles.
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The Montreal-based company with about 76 staff said in its creditor filing that the economic pressures and global tariffs contributed to it being unable to raise debt financing to fund a turnaround.
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David Perry, president of the Canadian Global Affairs Institute and a specialist in defence procurement, said Joly's plan is 'definitely a worthwhile initiative' but it comes with risk.
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Introducing a Buy Canadian element to military procurement without introducing 'additional inefficiencies in our procurement system, at a time when the government also campaigned on making it more efficient and streamlined, is going to be the real trick.'