With the threat of new 50 percent tariffs on Canadian products by U.S. President Donald Trump, the president of a steelworkers union in Hamilton expresses concern about the impact on the industry.
According to Ron Wells, president of United Steelworkers (USW) Local 1005, Canadian steel sales to the United States have already been negatively affected by existing tariffs. He warns that additional tariffs could lead to increased costs of living and have a widespread impact on businesses that rely on steel producers for their supplies.
Although 50 percent tariffs on steel have been in effect since last year, the exact implications of Trump’s recent announcement to increase tariffs on steel, automobiles, and auto parts to 50 percent starting January 1 remain unclear.
Hamilton is home to two major primary steel producers in Canada, ArcelorMittal Dofasco and Stelco, along with numerous fabricators.
Wells notes that business at Stelco, where his local represents around 620 workers, has slowed significantly since the tariffs were implemented.
Recent implementation of 50 percent U.S. tariffs on about $28 billion worth of Canadian goods following failed trade negotiations has further exacerbated the situation. Prime Minister Carney has indicated that Canada will retaliate with tariffs against the U.S. starting September 8.
Chamber CEO Highlights Business Challenges
Hamilton Mayor Andrea Horwath acknowledges the stress ahead for the city, emphasizing the need for federal and provincial support to help local businesses through these uncertain times.
Greg Dunnett, CEO of the Hamilton Chamber of Commerce, describes Hamilton as one of the hardest-hit communities and calls for support and investment to address the challenges faced by businesses.
Dunnett expresses that the city is currently experiencing significant difficulties due to the ongoing trade tensions.
Efforts to obtain comments from Cleveland-Cliffs, the owner of Stelco since July 2024, regarding the impact of current and potential tariffs on their Canadian operations were unsuccessful.
In a statement during a July 23 earnings call, Cleveland-Cliffs CEO Lourenco Goncalves expressed concerns about the future competitiveness of their operations in Hamilton in the absence of measures to ensure fair trade practices in Canada.
Wells emphasizes the importance of Cleveland-Cliffs honoring their commitments to preserve unionized jobs in Canada, expressing worries over the implications of recent statements.
Stelco also operates in Nanticoke, Ontario, along Lake Erie.