Amidst U.S. President Donald Trump’s recent threat of imposing new 50% tariffs on various Canadian products, the president of a Hamilton steelworkers union expressed concern over the impact on the industry.
The head of United Steelworkers (USW) Local 1005, Ron Wells, mentioned that the existing tariffs have already affected Canadian steel sales to the U.S., leading to a slowdown in business activities. He warned that further tariffs could increase costs for consumers and have a broad ripple effect on businesses reliant on steel supplies.
Although 50% tariffs on steel have been in effect since last year, Trump’s recent announcement on social media regarding a potential increase in tariffs for steel, automobiles, and auto parts starting January 1 has left the industry uncertain.
Hamilton is home to two major primary steel producers in Canada, ArcelorMittal Dofasco and Stelco, along with numerous fabricators.
Wells, representing around 620 Stelco workers, noted a significant slowdown in business activities since the implementation of tariffs.
Following failed trade negotiations between Canada and the U.S., the implementation of 50% U.S. tariffs on $28 billion worth of Canadian goods has added to the economic strain. In response, Prime Minister Carney announced retaliatory tariffs starting September 8.
Chamber CEO Highlights Business Struggles
Hamilton Mayor Andrea Horwath expressed concerns about the challenges faced by the city, emphasizing the need for support from federal and provincial authorities to navigate the uncertain economic landscape.
Greg Dunnett, CEO of the Hamilton Chamber of Commerce, echoed the sentiment, stating that Hamilton is among the hardest-hit communities and requires assistance and investments to mitigate the impact.
Dunnett emphasized the city’s current struggles, indicating a need for external support.
Efforts to reach Cleveland-Cliffs, the owner of Stelco, for insights on the tariff impact were unsuccessful at the time of publication.
In a recent earnings call, Cleveland-Cliffs CEO expressed concerns about the future competitiveness of their Hamilton operations due to the current trade environment.
Stelco’s operations in Nanticoke, Ontario, also face challenges due to the ongoing trade tensions.
