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Sault bracing for economic blow from U.S. steel tariffs
Sault bracing for economic blow from U.S. steel tariffs

CTV News

time3 days ago

  • Business
  • CTV News

Sault bracing for economic blow from U.S. steel tariffs

The United States' decision to double tariffs on Canadian steel and aluminum to 50 per cent took effect Wednesday, raising concerns over the future of Sault Ste. Marie's largest employer, Algoma Steel. Algoma steel A worker is shown at Algoma Steel in Sault Ste. Marie, Ontario on Friday, April 25, 2025. (File photo/THE CANADIAN PRESS/Sean Kilpatrick) 'I think we all know that at 50 per cent, the company will be selling everything at a loss, which is not a sustainable business,' said Bill Slater, president of United Steelworkers (USW) Local 2724, one of two unions representing Algoma Steel workers. With most of Algoma's business tied to U.S. markets, the tariff hike threatens significant economic fallout. The company declined an interview request but provided a statement previously sent to CTV News: The North American steel market is highly integrated, and Algoma Steel is deeply concerned with the announced increase in 232 steel tariffs to 50%. The Algoma Team remains in close consultation with our customers and the government regarding the challenges this presents to our business. Algoma is advocating for swift government action to support Algoma and the Canadian steel industry during this volatile time. — Algoma Steel, coporate affairs Mayor Matthew Shoemaker warned prolonged tariffs could devastate the city. 'There would be job losses. There would be secondary industries or suppliers that close. There would be restaurants that close. It would be … it would be the end of the community as we know it,' he said. Matthew Shoemaker An undated profile picture of Sault Ste. Marie Mayor Matthew Shoemaker. (File Photo/The City of Sault Ste. Marie) Slater noted 19 union members are already facing long-term layoff notices in July due to the previous 25 per cent tariffs, adding 'everybody is worried about their jobs.' While the federal government has proposed support measures – including Employment Insurance adjustments and increased naval shipbuilding contracts using Canadian steel – Slater said these won't provide immediate relief. 'They're all good infrastructure projects, all good things that we need for the country, but they're not going to help us today. They may help us in the future,' he said. He urged governments to 'stabilize the Canadian market', citing an influx of foreign steel driving down domestic prices. 'There's too much steel coming in from other countries because it's too hard for them to get into the U.S., and that's causing a lower price on the steel in Canada.' A meeting is scheduled for Friday between Algoma Steel, USW Locals 2724 and 2251, Mayor Shoemaker, MP Terry Sheehan, and MPP Ross Romano to discuss solutions. Steel coils cool at Algoma Steel Inc., in Sault Ste. Marie, Ont., Friday, April 25, 2025. THE CANADIAN PRESS/Sean Kilpatrick Steel coils cool at Algoma Steel Inc., in Sault Ste. Marie, Ont., Friday, April 25, 2025.(File photo/THE CANADIAN PRESS/Sean Kilpatrick) Shoemaker stressed the need for both short- and long-term fixes. 'At 50 per cent tariffs, there needs to both be a long-term solution or a permanent fix to the tariffs and a short-term solution to help plants immediately, because there is not the luxury of time to deal with the increased burden that is going to be placed on municipalities, the industry, and the community members affected by it,' he said.

‘Anger and anxiety': Sault Ste. Marie mayor on Trump doubling steel tariffs
‘Anger and anxiety': Sault Ste. Marie mayor on Trump doubling steel tariffs

CTV News

time4 days ago

  • Business
  • CTV News

‘Anger and anxiety': Sault Ste. Marie mayor on Trump doubling steel tariffs

Sault Ste. Marie Mayor Matthew Shoemaker says the federal and provincial governments need to come together with a plan to assist steel mills. U.S. President Donald Trump's newly doubled tariffs on steel are causing 'anger and anxiety' in Sault Ste. Marie, Ont., the border city's mayor says. In an interview with CTV Your Morning Wednesday, Mayor Matthew Shoemaker said Sault Ste. Marie's economy depends on steel – a product that Trump has made 'uneconomic to sell' with the stroke of a pen. 'Half of our community relies on the steel plant, either directly or indirectly,' he said. 'It's about 2,800 jobs directly, but it impacts grocery stores, restaurants, the theatre, you know, the home-improvement stores … and the suppliers, of course … every one of those businesses is going to be feeling the pinch.' Shoemaker says there is going to be an 'immediate' impact. Trump originally laid tariffs of 25 per cent on steel and aluminum imports in the early days of this year's global trade war. On Friday, the U.S. president announced he would double those rates to 50 per cent, effective Wednesday. Trump has said the move will protect his country's domestic steel industry, but Shoemaker described it as a problem for his community that has gone from bad to worse. '[Businesses] were able to, you know, hobble along, I would say, with the 25 per cent tariff while the negotiations were ongoing to resolve them, but at 50 per cent, it's going to … have to mean job impacts,' he said. The depth of those job losses will depend on how much support the industry gets from the federal government, Shoemaker noted. Prioritizing Canadian steel suppliers for things like defence and infrastructure projects has been pledged amid the trade war, but in the short-term, an emergency stopgap is needed. Sault-based Algoma Steel said in a statement they are 'advocating for swift government action,' and that they remain 'in close consultation with our customers and the government regarding the challenges this presents to our business.' In a May 31 statement, the United Steelworkers union described the tariff increase as 'a devastating blow to Canada's industries and the hundreds of thousands of jobs they support,' and called on Canada's federal government to 'act without delay to keep workers working.' And in a separate statement Wednesday morning, Unifor national president Lana Payne described the issue as a matter of "national economic security." '(U.S.) President Trump fails to understand the chaos and damage these tariffs will inflict on workers and consumers in both Canada and the U.S.,' she said. Prime Minister Mark Carney has said his government is actively negotiating to roll back the 'unlawful and unjustified' doubling of U.S. levies, while also putting some of Canada's own tariff revenues back into supporting workers and businesses. But help will be needed long before the trade war is resolved, Shoemaker said. 'Negotiating a resolution to this with the U.S. is not going to happen within the next couple of weeks, but there is the prospect of job losses within the next couple of weeks,' he told CTV. 'It's harder to rebuild a steel plant, or to recreate a manufacturing industry, than it is to support the one you've got.' The mayor is calling on the federal government to bring forward a 'concrete plan' within the next two weeks, either to buy or stockpile more steel from Canadian suppliers, or to support workers directly. 'It needs to be quick, and it needs to be impactful,' Shoemaker said. You can watch the full interview with Sault Ste. Marie, Ont., Mayor Matthew Shoemaker in the video player at the top of this article. With files from CTV News' Lyndsay Aelick, Lynn Chaya, Stephanie Ha and Darren MacDonald, and The Canadian Press.

Excitement as Sault plans major waterfront makeover
Excitement as Sault plans major waterfront makeover

CTV News

time4 days ago

  • Business
  • CTV News

Excitement as Sault plans major waterfront makeover

Sault's tourism department is working on a 20-year plan for improving its waterfront, with features like a promenade, a river pool & more. Planning is underway for a makeover to Sault Ste. Marie's waterfront, with the latest update given at this week's council meeting. The St. Marys River is viewed as the Sault's greatest natural draw, although many at city hall view it as underutilized. The city's tourism department is working on a 20-year plan for improving the area, with features such as a waterfront promenade, a river pool and more. Tourism officials said public feedback when creating the plan has been more than five times higher than normal. 'Outreach and support has been huge so far,' said Travis Anderson of Tourism Sault Ste. Marie. 'I'm certainly hoping that will eventually transition into some funding to be available. But again, that's at council's discretion.' Sault waterfront Sault Ste. Marie's tourism department is working on a 20-year plan for improving the area, with features such as a waterfront promenade, a river pool and more. Plans includes an urban beach The plan includes improvements to walkability, locations for wildlife observation, designated fishing spots and an urban beach, an idea Mayor Matthew Shoemaker is eager to support. 'The urban beach is a concept that I think has a lot of interest, has a lot of support and one that I campaigned on in 2022,' Shoemaker said. '(I'm) eager to see that come to fruition over the course of the coming years.' A number of the ideas include land the city doesn't own, including changes to St. Marys Drive that would need approval from the new owners of the Station Mall. 'So if we could move that street back closer to the mall building, then that would free up a lot of space for retail shops for mixed-use developments and would really revitalize a really well-used part of the waterfront, but really amplify the use even more,' Shoemaker said. An area that Anderson said would be easiest to improve is an already busy public space near the Roberta Bondar Pavilion. 'Adding some pop-up facilities, some seasonal retail and really looking at the connection on, you know, what we would term a tourist promenade up Spring Street to the plaza and all the way up to Queen Street,' he said. 'So really trying to drive, you know, people from the waterfront to Queen Street and vice versa.' City staff intend to break down the waterfront plan into different phases, prioritizing additions that will bring in dollars to the city the quickest. Anderson said he will return to council at the end of June with more details on the next phase.

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