Canadian steel and labour groups warn of job losses after US hikes import duties on metals to 50%
US President Donald Trump’s decision to double tariffs on steel and aluminum imports to 50 percent is set to shut Canadian producers out of the US market.
According to the Canadian Steel Producers Association, the move could destabilize domestic supply chains and affect thousands of jobs.
CSPA president and CEO Catherine Cobden stated that steel tariffs at this level will create mass disruption and cause negative consequences across the highly integrated steel supply chains and among customers on both sides of the border.
She warned the impact would be “a further blow to Canadian steel that will have unrecoverable consequences.”
The US imported nearly a quarter of its steel from Canada in 2023.
According to CBC News, the increased duties would block access for half of Canada’s steel production.
Industry Minister Mélanie Joly said she has been in “constant contact” with domestic producers and expects to meet with them in the coming days.
The tariff hike was announced Friday during Trump’s rally at US Steel’s Mon Valley Works–Irvin Plant near Pittsburgh.
According to Global News, Trump told the crowd the new 50 percent rate would “further secure the steel industry in the United States.” He added, “Nobody is going to get around that.”
Following the rally, Trump confirmed the increase on Truth Social and stated, “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.”
According to the government’s Producer Price Index, steel prices have already risen 16 percent since Trump’s inauguration in January.
Trump had considered a 40 percent tariff but said “the group” wanted it set at 50 percent.
Reported by CBC News, Intergovernmental Affairs Minister Dominic LeBlanc said Ottawa had “taken note” of Trump’s remarks. “In the face of economic threats posed by the United States, Canada remains resolute in defending our workers and our communities,” he said.
LeBlanc noted that economic independence from the US will be part of Prime Minister Mark Carney’s upcoming meeting with the premiers.
Canadian Labour Congress president Bea Bruske described the move as “yet another direct attack on Canadian workers.”
As reported by CBC News, she said it “will shut us out of the US market completely, devastating Canada's steel and aluminum industry and threatening thousands of good-paying, unionized Canadian jobs.”
Bruske called for emergency reforms to employment insurance and wage subsidies in response.
Candace Laing, president and CEO of the Canadian Chamber of Commerce, warned of broader economic risk.
According to CBC News, she said “unwinding the efficient, competitive and reliable cross-border supply chains in steel and aluminum comes at a great cost to both countries.”
She added that the last round of tariffs in 2018 led to a net job loss in the US and reaffirmed Canada’s role as “a reliable and secure trading partner.”
The European Commission also responded sharply.
As reported by the BBC, the EU said it “strongly regrets” the tariff increase, warning it “undermines ongoing efforts” to reach a negotiated solution and raises the risk of renewed countermeasures.
The UK government said it was seeking clarity from the US, while UK steelmakers described the decision as “yet another body blow.”
Trump’s announcement coincided with a proposed US$14bn investment in US Steel by Japan’s Nippon Steel, in addition to its US$14.9bn bid to acquire the company.
According to Global News, Trump stated that US Steel would remain an American company but gave no further details on the agreement.
BBC reporting noted that Trump promised steelworkers a $5,000 bonus and pledged “no layoffs and no outsourcing whatsoever.”
The US still imports roughly one-quarter of its steel, and major producers like China, India, and Japan continue to dominate global supply.
