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Hamilton Spectator
01-08-2025
- Business
- Hamilton Spectator
Disappointment, but no shock in Hamilton as tariff deadline passes without a deal
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


CBC
05-06-2025
- Business
- CBC
Hamilton steelworkers hang onto jobs for now but brace for impact as U.S. doubles industry tariffs
Social Sharing It's not clear what increased U.S. steel tariffs will mean for Hamilton, but workers and industry leaders agree it's nothing good. "The fear is these additional tariffs might hurt Stelco's customers and their ability to sell to their U.S. customers," Ron Wells, who represents workers at that steel manufacturer, told CBC News Network Wednesday. "The trickle-down effect could have adverse impacts on Stelco and our workforce." U.S. President Donald Trump signed an executive order Tuesday applying a 50 per cent tariff to steel and aluminum Americans import. The order took effect Wednesday, doubling tariffs that had already been in place since March 12. At Stelco — which has factories in Hamilton and Nanticoke, Ont., and is owned by American company Cleveland-Cliffs — Trump's tariffs have already had a big impact. According to Ron Wells, president of United Steelworkers Local 1005, his employer lost all its U.S. business, representing about 30 per cent of its work. It made back 10 per cent with additional Canadian customers, Wells said. Now, the fear is companies that buy from Stelco then sell to the U.S. will find it harder to do so and therefore buy less. There haven't been job losses at Stelco, Wells said, though in Hamilton, the company isn't hiring temporary summer staff like usual. There are about 650 hourly workers in the bargaining unit in Hamilton, 1,100 in Nanticoke, and a few hundred non/union managers who work at Stelco, he said. Overall, Wells said, workers he represents seem more upset than scared right now. "No one needs this additional stress or frustration." CBC Hamilton contacted Stelco for comment on the increased tariffs but did not receive a response. MP says 10,000 Hamiltonians directly employed by steel sector John-Paul Danko, newly elected MP for Hamilton West—Ancaster—Dundas said uncertainty is causing "immense stress and anxiety for Hamilton families." The steel industry employs over 10,000 workers directly and there are up to 40,000 local jobs "at risk in associated industries" due to the tariffs, the former city councillor said in a statement Wednesday. Hamilton Mayor Andrea Horwath also issued a statement condemning the tariffs, saying they "put thousands of good jobs at risk," delay investment and "threaten the stability our industries need to thrive." "The longer this goes on, the larger the impacts are gonna be," Greg Dunnett, head of the Hamilton Chamber of Commerce told News Network. The community is supporting affected businesses for now, he said, but if the trade war drags on, it becomes more likely companies will go into "survival mode." In Hamilton, Dunnett said, there's a strong advanced manufacturing sector built around Stelco and ArcelorMittal Dofasco. When steel prices go up, he said, demand goes down. "We're gonna see that impact, then it'll go all the way down into our community," he said. John Farrell, who retired from ArcelorMittal Dofasco after 40 years with the company, told News Network that while it's not as prominent as it used to be, the steel industry in Hamilton still provides good jobs. "A job like that, you can afford to go out for dinner. You can afford to do things that cost money," he said, noting that if steelworkers find themselves with less to spend, that'll affect a variety of businesses such as local restaurants. Industry leader says Canada shut out of U.S. market Some steel businesses have told CBC News they'll be able to adjust to the tariffs but others have been less confident. Catherine Cobden, CEO of the Canadian Steel Producers Association, told CBC News with the current tariff in place, "we basically consider the U.S. market closed." "We can't ship at 50 per cent. Perhaps we can stockpile for a few days, but obviously we can't keep producing if one of our major markets is shuttered," she said. Marty Warren, United Steelworkers National Director for Canada, echoed that sentiment in a statement Saturday, saying: "This isn't trade policy – it's a direct attack on Canadian industries and workers. Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk. Canada needs to respond immediately and decisively to defend workers." Industry and unions call for retaliation Cobden said her industry wants the federal government to match the U.S. steel tariffs, and impose tariffs that will prevent foreign steelmakers from selling at low prices in Canada. Private sector union Unifor called for retaliatory tariffs Wednesday and so did Keanin Loomis, the Hamilton-based president and CEO of the Canadian Institute of Steel Construction. As of Wednesday afternoon, the federal government had not announced such measures, with Industry Minister Mélanie Joly indicating the government wasn't about to match tariffs on U.S. goods and is still in negotiations with that country. The federal government has yet to announce such measures. WATCH: Prime Minister Mark Carney speaks on tariffs ahead of caucus meeting: Carney responds to U.S. aluminum and steel tariffs doubling 19 hours ago Duration 0:45 Danko said the federal government will "take all steps necessary to protect Canadian workers with a coordinated strategic response." At the same time, it will look to grow the steel market and reduce reliance on American exports by removing inter-provincial trade barriers and investing in new infrastructure and defence projects that use Canadian steel and aluminum, he added. In a Hamilton cafe, Steve Lortye told CBC News Network some good might come of all this. Lortye, who's semi-retired and worked for a company that did business with ArcelorMittal Dofasco, said the trade war has caused Canadians to think more seriously about diversifying our economy and finding new trading partners, something he thinks will be good for the country overall and Hamilton's steel sector in particular. "I think that Canada's going to hold its own," he said. "It's gonna take some time. We'll have some pain. But hey, we can thank the orange man for making us stronger."