Steel industry, labour leaders call for government action as U.S. tariffs spike

TORONTO — Canada’s steel industry needs the federal government to take swift action as it faces an existential threat from steeply increased U.S. tariff, said Catherine Cobden, head of the Canadian Steel Producers Association.

“We’re going to be a deeply weakened sector in a very short period of time,” she said after the U.S. doubled its tariffs on steel and aluminum imports to 50 per cent.

Industry players had hoped to get a last-minute reprieve on the U.S. metals tariffs, but when that didn’t happen it sent companies scrambling, said Cobden.

“Steel was already ready and loaded, locked and loaded, and some of it even in transport, so, completely chaotic.”

The higher tariffs not only make Canadian exports to the U.S. uneconomic, but will also mean Canada’s domestic market could be flooded by imports from other countries also shut out of the U.S., said Cobden.

“We’re going to be inundated with steel that was destined for the United States diverting into Canada. We already have an unfair trade problem here, so it’s going to get much worse very, very quickly.”

The industry association is calling on the federal government to expand an existing 25 per cent tariff on metal products finished in China to also include products from other countries made from steel melted and poured in China. The industry has long alleged that the Chinese government unfairly supports its industry to create artificially low prices.

It also called for the government to fully reinstate retaliatory tariffs on U.S. steel and match the latest escalation.

By reducing imports into Canada, producers here can recapture some of the domestic market, said Cobden.

“There’ll still be shrinkage in the industry. We’ll be weaker, but we won’t be, you know, collapsed, which is where I’m afraid we’re heading.”

Prime Minister Mark Carney said Wednesday on his way into the weekly Liberal caucus meeting in Ottawa that Canada is deep in talks with the U.S. on trade, and is still considering its response to Trump’s latest escalation.

“We will take some time — not much, some time — because we are in intensive discussions right now with the Americans on our trading relationship.”

Ontario Premier Doug Ford also called for full retaliatory tariffs, while Canadian Chamber of Commerce CEO Candace Liang said at a press conference that carefully considered retaliation is in order.

“In this moment it is absolutely understandable we would want to show fight,” she said in Ottawa.

“So we can look at the use of targeted counter tariffs, but be careful to maximize impact on the U.S., while minimizing impact on the home front.”

The aluminum industry is also being disrupted by the increased tariffs, though the higher price per kilogram of the metal makes it more economic to ship abroad.

The Aluminum Association of Canada said it strongly opposed higher rates, which effectively makes Canadian exports to the U.S. economically unviable, and that industry players may be forced to diversify trade toward the European Union.

The heightened tariffs will mean less demand across North America and threatens the security of the integrated supply chain, said Jean Simard, president and CEO of the association.

“It will impact workers on both sides of the border and disrupt key sectors including defense, construction and automotive,” he said in a statement.

Canada’s metal producers are already feeling the hit from both the initial 25 per cent tariffs imposed March 12, and the general uncertainty of what’s to come, said Canadian Labour Congress president Bea Bruske.

“The reality is we’ve already seen job losses in the steel and aluminum industry, because the uncertainty is just as bad as the reality of it,” she said at the same press conference as Liang.

“And we know within the next couple of days and weeks job losses will start to accumulate, so time is absolutely critically important,” said Bruske, noting that 23,000 people work across steel industries in Canada and another 9,500 in aluminum.

Cobden put the job losses at around 700 from the initial round of tariffs, while Canadian steel shipments to the U.S., where half of production goes, were down 30 per cent in April.

Algoma Steel said in a statement that it is deeply concerned with the increased tariffs, and is advocating swift government action to support the company and the wider industry during this volatile time.

Unifor said in a news release Wednesday that heightened tariffs on steel and aluminum are a direct threat to Canadian jobs and security, and also urged the federal government to act without delay to defend the industry.

“These tariffs are killing investment in our steel, aluminum, and auto sectors, and we are already seeing the consequences in lost jobs and economic instability,” said Unifor national president Lana Payne in a statement.

“We need immediate and forceful action to defend good jobs and safeguard our national economic security.”

Federal politicians are set to meet industry and labour leaders Thursday who are set to press their demands directly. Cobden said the government’s recent commitment to buy Canadian steel for infrastructure and defence projects is welcome, but more needs to be done.

“We applaud that, we’ve been looking for that for decades, but now we have the circumstance where we might not be around to serve those projects.”

— With a file from David Baxter in Ottawa.

This report by The Canadian Press was first published June 4, 2025.

Ian Bickis, The Canadian Press