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Winnipeg Free Press
16 hours ago
- Business
- Winnipeg Free Press
‘Hard to look at the bright side'
Lost sales, higher prices and material shortages have recently hit Manitoba businesses reliant on steel and aluminum — and it could get worse. U.S. President Donald Trump announced last week he'd raise tariffs on steel and aluminum imports to 50 per cent, a doubling of the current levy. As of Monday afternoon, the change is proposed to begin Wednesday. Current tariffs already have a 'deep and profound' impact across the supply chain, said Catherine Cobden, president of the Canadian Steel Producers Association. MIKE DEAL / FREE PRESS Steel in various forms wait to be shipped to customers. Premier Wab Kinew and Selkirk Mayor Larry Johannson speak flanked by employees and in front of a giant Canadian flag hanging in one of the buildings at the Gerdau Manitoba Steel Mill, 27 Main St., Selkirk, Thursday morning. Reporter: Gabrielle Piche 250327 - Thursday, March 27, 2025. Gerdau SA's Selkirk steel plant is a CSPA member. A majority of the company's steel is exported to the United States; it employs upwards of 500 Manitobans. Gerdau previously directed a reporter to the CSPA for comment. Across Canada, steel shipments to the United States dropped roughly 30 per cent in April, Cobden said. Twenty-five per cent tariffs came into effect in March. 'This will close the market for Canadian exports to the United States,' Cobden said of the prospect of a 50 per cent levy. Selkirk Mayor Larry Johansson considers himself an 'optimistic kind of mayor.' '(But) it's hard to look at the bright side when they raise the tariffs another 25 per cent,' he said. For now, he's clocked activity in Gerdau's lot — plenty of semi-trucks. Gerdau employees haven't been laid off to date, the United Steelworkers confirmed. A 50 per cent tariff would be a 'massive challenge' to Gerdau and similar mills, said Scott Lunny, a United Steelworkers director. 'Who pays the price for that, often, is workers.' 'There's customers I supply in the U.S. that, when he does things like this, they just stop buying and wait six weeks.'– Richard Bobrowski, Imperial Steel owner Meantime, Imperial Steel hasn't laid off staff, despite recording a 25 per cent drop in sales year-over-year. The Winnipeg company, which makes thin-wall steel tubing, exported roughly 70 per cent of its products to the U.S. in 2024. 'You get going for a few weeks, and all of a sudden the president of the United States makes a statement,' said Richard Bobrowski, Imperial Steel owner. 'There's customers I supply in the U.S. that, when he does things like this, they just stop buying and wait six weeks.' American clients are sourcing within their home country more, Bobrowski added. Imperial Steel struggles to give consistent pricing — between tariff changes and recent steel price fluctuations — and U.S. customers are hesitant to sign on, wondering what change could occur before a shipment arrives. Imperial Steel currently splits the 25 per cent import tariff with its American patrons. It made a decision Monday: it won't swallow more than 12.5 per cent of a 50 per cent tariff. 'Which will then stress our company's ability to compete,' Bobrowski said. 'That's when the government has got to get involved.' The Manitoba government tabbed $300 million for tariff-impacted businesses and farmers in its Budget 2025 contingency plan. The funding hasn't yet been used. Evolution Wheel has avoided tariffs on both sides of the border, said owner Derek Hird. The Winnipeg-based construction-grade solid tire maker imports steel from the United States; it's exempt from Canada's reciprocal tariffs because of a carve-out for manufacturers. The company mainly ships south of the border. But the turnaround time has lengthened — Evolution Wheel hasn't been able to source the specific steel it needs. 'Companies … are just buying up huge amounts of stock, and there's no supply,' Hird said. 'You're … fighting for scraps on what's available in the market right now.' 'Companies … are just buying up huge amounts of stock, and there's no supply,' Hird said. 'You're … fighting for scraps on what's available in the market right now.'– Evolution Wheel owner Derek Hird Supply chain issues have resulted in lost sales, Hird added. Meantime, he's paying more for the steel he purchases. So, too, is Northern Steel Buildings, a steel shop enterprise in Morden. It gets steel from Canada and the United States, and it pays Canada's 25 per cent reciprocal tariff. The tariffed products can be cheaper than Canadian steel, said general manager Rick Friesen. That won't be the case if a 50 per cent fee comes online on Canada's side. 'If the Canadian government decides to retaliate … I think that will hinder the Canadian economy and growth,' Friesen said. The economic uncertainty is damaging, said Chuck Davidson, president of the Manitoba Chambers of Commerce. 'We continue to … move the goalposts at the whim of the (U.S.) president.' If businesses feel further tariff effects, government assistance could be needed, he added. The Canadian Steel Producers Association is calling for Ottawa to implement tariffs to incentivize domestic steel use. Local producers compete with unfairly traded international steel that retails cheaper, Cobden asserted. Manitoba is among the jurisdictions pledging to use more Canadian steel. In March, Premier Wab Kinew declared government infrastructure projects requiring steel would source Canadian. These announcements are appreciated, Cobden said, but the projects might be too late to mitigate the damage of a 50 per cent tariff. 'If the Canadian government decides to retaliate … I think that will hinder the Canadian economy and growth.'– Northern Steel Buildings general manager Rick Friesen However such a levy isn't a given, said Gary Mar, Canada West Foundation president. 'I think the best idea is to … wait and see what the president actually does first.' Monday Mornings The latest local business news and a lookahead to the coming week. He believes Americans will push back against tariffs as they feel pain in their pocketbooks. The impact hasn't reached its peak, Mar stated, noting hundreds of U.S. politicians will run for office again next year. Meantime, Manitoba companies are attempting to dodge tariffs. Northern Steel Buildings is consulting agencies about a reciprocal tariff exemption. It's heard of other companies being successful, Friesen said. Eascan Automation in Winnipeg, which creates robots, is tapping Canadian companies to bulk order aluminum goods from Europe for direct shipment into Canada. The goal is tricky because Eascan orders custom parts and its supplier distribution centres are in the United States, said chief executive Camila Bellon. Canada exported $20 billion worth of steel and iron to the U.S. last year and $4.1 billion in aluminum, per Natural Resources Canada data. Gabrielle PichéReporter Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle. Every piece of reporting Gabrielle produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Calgary Herald
16 hours ago
- Business
- Calgary Herald
Canada's steel industry says Trump's next tariff hike threatens 'mass disruption' to supply chain
Article content United States President Donald Trump has announced plans to jack up tariffs on steel and aluminum to 50 per cent on June 4 in a move that will further inflame trade tensions. Article content Canadian steel and aluminum producers have faced 25 per cent U.S. tariffs since early March, even though Trump has granted pauses and scaled back some of his administration's other tariffs. Article content Article content The consequences of the steel and aluminum tariffs include reduced industry profits and higher prices for consumers on a wide range of goods, which then reduces demand and further erodes profits. The tariffs have already led to layoffs at plants throughout Canada. Article content 'Steel tariffs at this level will create mass disruption and negative consequences across our highly integrated steel supply chains and customers on both sides of the border,' the Canadian Steel Producers Association (CSPA) said in a statement on Saturday. Article content Trump made the announcement at a steel plant near Pittsburgh, saying no one would be able 'to steal your industry.' Article content The announcement, which also affects aluminum, comes at a time when global steel prices have been low, which had softened the blow of the tariffs on U.S. buyers of steel. Article content Still, the impact has been pronounced in Canada. Sault Ste. Marie, Ont.-based Algoma Steel Inc. said in its first-quarter earnings report that it paid $10.5 million in tariffs after they had been in place for just two weeks. Article content Article content An updated figure has not been released since then, but chief executive Michael Garcia earlier this month said 60 per cent of Algoma's revenue has traditionally come from the U.S., and the company was making changes to reduce that to closer to 50 per cent. Article content Article content 'The Canadian market has become increasingly challenging, as foreign steel that would have historically gone to the U.S. is now being redirected to Canada due to U.S. tariffs,' he said at the time. 'This has created an oversupply … across multiple product segments, driving down prices and compressing margins.' Article content Algoma's share price has declined 48.9 per cent since January, and 59 per cent since November, to $4.94 per share. That has reduced its total market capitalization to $518 million. Article content The company is just completing an $850-million project to switch its steelmaking process to an electric arc furnace, which will vastly reduce its greenhouse gas emissions while also changing its business structure by allowing it to use scrap metal.
Yahoo
2 days ago
- Business
- Yahoo
Quebec premier calls new Trump tariff threats on steel and aluminum 'completely unjustified'
Quebec Premier François Legault is calling U.S. President Donald Trump's latest tariff threat on Canadian steel and aluminum producers "completely unjustified." He made the remark in a post on X, after Trump announced his intention to double the tariffs on steel and aluminum imports to 50 per cent next Wednesday. "If he goes ahead with this tariff increase, it will harm our economy, as well as the American economy," Legault wrote in French. Legault added the situation was being closely monitored as they await to see the details of the executive order. In the meantime, "assistance programs continue to be available to businesses in need," he said. Both the Canadian Steel Producers Association (CSPA) and United Steel Workers Canada condemned the increase in U.S steel tariffs. "We're already in a dire situation with the 25 per cent tariffs imposed on us in March, so an additional 25 per cent will be catastrophic for our industry," François Desmarais, the CSPA's vice-president of trade and industry affairs, told CBC in an interview. Meg Gingrich, assistant to the national director for the United Steel Workers, agreed, saying the move could deliver a "potentially devastating blow" to the industry. Gingrich and Desmarais pointed to hundreds of layoffs across the country as a result of the current tariffs and Desmarais noted a "massive drop" in steel shipments to the United States. Desmarais said in April there were 30 per cent less shipments compared to the same time last year. "You have to keep in mind that over 50 per cent of Canadian steel production is sold in the United States," he said, adding he worries Canadian producers will be shut out of the market if Trump makes good on the proposed increase. Both organizations are calling on the federal government to take strong action and reinstate counter tariffs immediately, but some are hoping for a more measured response. WATCH | International trade lawyer weighs in on Trump's threat: Response needs to be targeted "We understand that we need to have a political answer to the situation," said Julie White, CEO of the Manufacturiers et Exportateurs du Québec — a business association whose mission is to promote the growth of the Quebec manufacturing sector. She said, however, that any response needs to be targeted and take into account how it will impact different sectors. White explained that producers of steel and aluminum are in a different situation than the manufacturers who transform those products. "If it's inputs on the production that are affected by counter tariffs it's going to up the prices of production a lot and there's going to be an impact on businesses in their costs," she said. "Are they going to be able to keep producing? Are they going to be able to keep all their workers in place?" White says the uncertainty from the threat of tariffs has hurt manufacturers and exporters in Quebec more than the tariffs themselves, with those taxes leading to lost contracts and investments being delayed. "At the beginning a lot of people were afraid of the situation, but we've seen that even if Donald Trump has said a lot of things, not all of them happen," she said, adding it's important to take a step back, think longer term and try to find new opportunities. As an example, White said, the federal government is set to increase its defence spending, so "how are some manufacturers going to shift their production to make sure they respond to those new contracts?" Counter tariffs not the only solution Both Desmarais and Gingrich agree that counter tariffs are only part of the solution. Addressing issues surrounding the sectors' competitiveness and ensuring the integrity of the market in Canada are paramount. That, according to Gingrich, would require stemming the flow of unfairly traded steel and aluminum into our borders and could perhaps be achieved with a surtax on countries that don't play by the same rules. She explained how some steel producers affected by American tariffs are looking for new markets to unload their production. There's a risk of the Canadian market being flooded and undercut by products that are made for cheap abroad through practices such as overproduction, poor labour and environmental standards as well as currency manipulation, Gingrich said. Desmarais added another solution to boost the sector would be for governments to require domestic products be used for infrastructure projects. WATCH | Head of CPSA urges Ottawa to retaliate:
CBC
2 days ago
- Business
- CBC
Quebec premier calls new Trump tariff threats on steel and aluminum 'completely unjustified'
Quebec Premier François Legault is calling U.S. President Donald Trump's latest tariff threat on Canadian steel and aluminum producers "completely unjustified." He made the remark in a post on X, after Trump announced his intention to double the tariffs on steel and aluminum imports to 50 per cent next Wednesday. "If he goes ahead with this tariff increase, it will harm our economy, as well as the American economy," Legault wrote in French. Legault added the situation was being closely monitored as they await to see the details of the executive order. In the meantime, "assistance programs continue to be available to businesses in need," he said. Both the Canadian Steel Producers Association (CSPA) and United Steel Workers Canada condemned the increase in U.S steel tariffs. "We're already in a dire situation with the 25 per cent tariffs imposed on us in March, so an additional 25 per cent will be catastrophic for our industry," François Desmarais, the CSPA's vice-president of trade and industry affairs, told CBC in an interview. Meg Gingrich, assistant to the national director for the United Steel Workers, agreed, saying the move could deliver a "potentially devastating blow" to the industry. Gingrich and Desmarais pointed to hundreds of layoffs across the country as a result of the current tariffs and Desmarais noted a "massive drop" in steel shipments to the United States. Desmarais said in April there were 30 per cent less shipments compared to the same time last year. "You have to keep in mind that over 50 per cent of Canadian steel production is sold in the United States," he said, adding he worries Canadian producers will be shut out of the market if Trump makes good on the proposed increase. Both organizations are calling on the federal government to take strong action and reinstate counter tariffs immediately, but some are hoping for a more measured response. WATCH | International trade lawyer weighs in on Trump's threat: Trump says he will double tariffs on steel and aluminum 2 days ago Duration 1:29:02 U.S. President Donald Trump said he will double tariffs on steel and aluminum imports to 50 per cent next Wednesday. Hanomansing Tonight spoke with an international trade lawyer about the announcement. Response needs to be targeted "We understand that we need to have a political answer to the situation," said Julie White, CEO of the Manufacturiers et Exportateurs du Québec — a business association whose mission is to promote the growth of the Quebec manufacturing sector. She said, however, that any response needs to be targeted and take into account how it will impact different sectors. White explained that producers of steel and aluminum are in a different situation than the manufacturers who transform those products. "If it's inputs on the production that are affected by counter tariffs it's going to up the prices of production a lot and there's going to be an impact on businesses in their costs," she said. "Are they going to be able to keep producing? Are they going to be able to keep all their workers in place?" White says the uncertainty from the threat of tariffs has hurt manufacturers and exporters in Quebec more than the tariffs themselves, with those taxes leading to lost contracts and investments being delayed. "At the beginning a lot of people were afraid of the situation, but we've seen that even if Donald Trump has said a lot of things, not all of them happen," she said, adding it's important to take a step back, think longer term and try to find new opportunities. As an example, White said, the federal government is set to increase its defence spending, so "how are some manufacturers going to shift their production to make sure they respond to those new contracts?" Counter tariffs not the only solution Both Desmarais and Gingrich agree that counter tariffs are only part of the solution. Addressing issues surrounding the sectors' competitiveness and ensuring the integrity of the market in Canada are paramount. That, according to Gingrich, would require stemming the flow of unfairly traded steel and aluminum into our borders and could perhaps be achieved with a surtax on countries that don't play by the same rules. She explained how some steel producers affected by American tariffs are looking for new markets to unload their production. There's a risk of the Canadian market being flooded and undercut by products that are made for cheap abroad through practices such as overproduction, poor labour and environmental standards as well as currency manipulation, Gingrich said. Desmarais added another solution to boost the sector would be for governments to require domestic products be used for infrastructure projects.
Time of India
3 days ago
- Business
- Time of India
Trump's 50 percent tariff bombshell sparks cross-border chaos, industry panic, and fears of a new trade war with Canada
US President Donald Trump 's recent decision to double tariffs on steel and aluminum imports, from 25 to 50 percent, has sent shockwaves through the North American steel industry. Canada's steel producers warn this move will cause 'mass disruption' and could deeply harm workers and businesses on both sides of the border. On Friday(May 30), Trump announced the steep tariff increase during a rally at US Steel's Mon Valley Works near Pittsburgh, asserting it would protect and revive American steel manufacturing. 'Our steel and aluminum industries are coming back like never before,' Trump said. 'Nobody is going to get around that.' While the president celebrates a rebirth of US manufacturing, Canada's steel industry paints a starkly different picture. Canada's steel industry is at risk Live Events 'The Canadian and US steel industries are so tightly linked that tariffs at this level will disrupt entire supply chains,' said Catherine Cobden, president and CEO of the Canadian Steel Producers Association (CSPA). 'This move essentially closes the US market to half of Canada's steel production.' Cobden called on the Canadian government to respond immediately by reinstating retaliatory tariffs on US steel and aluminum imports, and by implementing new protections to prevent unfairly traded steel from flooding Canadian markets. The CSPA warns that a trade war between the two countries would have 'unrecoverable consequences' for workers, businesses, and communities that depend on steel production. For many towns in both countries, steel mills are more than factories, they are lifelines that provide stable jobs and economic security. A human story behind the tariffs Take Hamilton, Ontario, known as Canada's 'Steel City.' Generations of families have worked in steel mills that now face uncertainty. Workers like Jamie Thompson, who has spent 20 years at a local plant, worry the tariffs will trigger layoffs or plant closures. 'This isn't just numbers on a page. It's our livelihoods,' Thompson said. Similarly, in Pennsylvania's steel towns, the sentiment is mixed. While some cheer the tariffs as a lifeline, others worry that retaliatory tariffs will make steel exports to Canada and Mexico more difficult, potentially leading to lost business. Background: Why tariffs? The US first imposed 25 percent tariffs on steel and aluminum in March, citing concerns about 'dumping', the practice of countries selling steel at a loss to undercut US producers. Trump claims these tariffs will bring manufacturing jobs back to the US after years of decline. However, experts warn that such tariffs often lead to higher costs for manufacturers who rely on steel, such as the automotive and construction sectors, driving up prices for consumers. What's next? The new 50 percent tariff takes effect next week, leaving little time for governments and businesses to prepare. Canadian officials have reportedly been consulting on possible countermeasures, and Cobden stresses: 'The time for the Canadian government to act is now.' As the two countries brace for a potential trade escalation, workers and communities on both sides of the border face uncertainty, caught between political decisions and economic realities.
