A commitment by the federal government to use Canadian steel and aluminum for major national defence and infrastructure projects could be a “turning point” for Canada’s economy, the union representing steelworkers said Monday.
“The United Steelworkers (USW) welcomes the federal government’s decision to require Canadian steel and aluminum in national infrastructure and defense projects,” the union’s national director Marty Warren said.
The statement comes after Industry Minister Melanie Joly committed to using Canadian steel and aluminum in national infrastructure and defence projects as U.S. President Donald Trump threatens to impose more tariffs.
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.
The hike in tariffs is set to go into effect Wednesday.
Warren said this action by the Canadian government was especially important “in the face of a worsening trade war and unfair global competition.”
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The union, which represents 225,000 members across Canada, called for protections to be put into place for workers impacted by Trump’s tariffs.
“We continue to call for stronger trade enforcement, anti-dumping measures, comprehensive reform to Employment Insurance, and the introduction of a wage subsidy program to support workers impacted by this trade war,” Warren said.
The Liberals campaigned in the recent election on “maximizing” the use of Canadian steel, aluminum and forestry products in public projects.
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. He threatened to increase those on Saturday.
Canadian metal producers are sounding the alarm over Trump’s heightened tariff plan.
Catherine Cobden, president and CEO of the Canadian Steel Producers Association (CSPA), said the steel industries in Canada and the U.S. are highly integrated and tariffs would hit steel producers on both sides.
“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,” Cobden said in a statement Saturday.
The tariff increase will take effect Wednesday, Trump said in a Truth Social post shortly after he announced the new rate for steel imports at a rally with steelworkers in Pennsylvania.
“Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers,” Trump wrote.
Cobden said the move “essentially closes the U.S. market to our domestic industry for half of its production.”
“It is vital that the Government of Canada responds immediately to fully re-instate retaliatory steel tariffs to match the American tariffs and to implement as quickly as possible new tariffs at our own borders to stop unfairly traded steel from entering Canada,” she said.
She said a trade war between Canada and the U.S. would “have unrecoverable consequences” on the North American steel industry.
— with files from The Canadian Press
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