Canadian mayors, workers worry about 'permanent damage' from Trump tariffs - Business News

Canadian mayors, workers and industry representatives are warning that the Trump administration's punishing tariffs on steel and aluminum could cost jobs and cause lasting damage to industries on both sides of the border.

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Photo: The Canadian Press

An aerial view of Alubar, an aluminum rod manufacturer in Bécancour, Que., on March 5, 2025. THE CANADIAN PRESS/Christinne Muschi

Canadian mayors, workers and industry representatives are warning that the Trump administration's punishing tariffs on steel and aluminum could cost jobs and cause lasting damage to industries on both sides of the border.

They say Canada is already starting to see the effects of the tariffs, with a drop in demand from some American customers, and they're hopeful for a change of heart from the White House as the effects of the policy hit home.

In Hamilton, Ont., a hub of Canada's steel industry, Mayor Andrea Horwath said Wednesday that the city has never encountered a challenge "as dire as what we are facing now."

All countries, including Canada, were hit Wednesday with 25 per cent tariffs on steel and aluminum imports into the United States — part of U.S. President Donald Trump's attempts to realign global trade.

Horwath said the economic hit of a protracted trade war would be felt across the city of around 600,000 people, not just by the 28,000 people with direct and indirect jobs in the steel industry.

"I am very concerned, and I am hoping that we can get some resolution to this chaos," she said in an interview. "The longer (the tariffs) last, the more permanent damage happens to our industry here."

Jean Simard, president of the Aluminum Association of Canada, said orders from U.S. clients will slow and aluminum will pile up at Canadian factories if the tariffs persist.

He pointed to the example of Coca-Cola, which last month said it would shift to using more plastic bottles instead of cans if Trump’s tariffs took effect.

"A 25 per cent tariff is destructive to a market," he said. "So there will be a destruction of demand for aluminum in the American market. We're already starting to see it."

If the tariffs last, he said, Canadian producers will gradually look to sell more of their aluminum to Europe. But he added that some customers, including auto manufacturers, are locked into contracts and will have no choice but to pay the steep tariffs on imported aluminum.

Last month, the chief executive officer of Ford Motor Co. warned that 25 per cent tariffs would be devastating to the U.S. auto industry.

On Wednesday, the Canadian government announced it would impose 25 per cent tariffs on nearly $30 billion worth of U.S. goods in retaliation against the steel and aluminum tariffs.

Simard said there’s a good chance the White House will soon face pressure to relax the tariffs as the market reacts. "It's not sustainable. It doesn't make sense," he said, urging Canada not to back down. "We must draw our line in the sand and remain firm."

In Saskatchewan, Premier Scott Moe told reporters the province is working on a plan that would help keep steelworkers employed, though he offered no details.

Evraz North America operates Western Canada’s largest steel plant in Regina. Mike Day, president of the United Steelworkers Local 5890, said workers at the plant are feeling anxious amid the economic uncertainty.

“My message to Donald Trump is to stop. You have to stop. You’re hurting both the Canadian and American economies, as well as workers in both countries,” Day told reporters at a news conference in Regina. “This is an economic attack on workers.”

Day said he believes the Regina mill can maintain production despite the tariff.

“(But) there’s the uncertainty of what (Trump) is going to do in the next three hours, tomorrow or next week."

In Sault Ste. Marie, Ont., Algoma Steel Inc. confirmed it has "temporarily paused shipments to the U.S." pending the outcome of discussions between Canadian and American officials on Thursday. A spokesperson said the company is "deeply concerned" by the tariffs.

Mayor Matthew Shoemaker said long-lasting U.S. tariffs would have a devastating impact on the northern Ontario city, which is heavily dependent on the steel producer.

"That's not just the steelmakers and the contractors that go in there, but it's also the restaurants and the grocery stores that sell retail goods to steelworkers," he said in an interview.

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