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OTTAWA \u2014 Industry Minister Fran\u00e7ois-Philippe Champagne has directed his department to prioritize investments in projects that primarily use Canadian steel and aluminum \u2014 part of Ottawa\u2019s reply to the Trump administration\u2019s trade war.<\/p>\n
The move comes as Canada\u2019s steel industry starts laying off workers in anticipation of production slowdowns.<\/p>\n
Champagne said the move was in response to the \u201cunfair and unjustified\u201d 25 per cent tariffs on steel and aluminum levied by U.S. President Donald Trump.<\/p>\n
Canada replied to Trump\u2019s steel and aluminum levies with 25 per cent tariffs on $29.8 billion worth of American goods, which took effect just after midnight Thursday (March 13).<\/p>\n
Champagne said Canadian steel and aluminum support vital U.S. industries, including defence and automotive manufacturing.<\/p>\n
\u201cThey are also essential for securing our collective energy future and generate high-quality jobs on both sides of the border,\u201d he said in a statement.<\/p>\n
About a quarter of all steel used in the U.S. is imported and Canada is the United States\u2019 largest source of both steel and aluminum.<\/p>\n
The Trump administration has used tariffs in an attempt to push the auto sector to move production to the United States.<\/p>\n
The head of the Canadian Steel Producers Association warned in a media statement that the tariffs will hit the industry hard in both Canada and the U.S.<\/p>\n
\u201cThese tariffs will have devastating repercussions on both sides of the border for workers and communities that rely on a strong North American steel industry. Indeed, many are already feeling the impacts,\u201d said CSPA president and CEO Catherine Cobden.<\/p>\n
Layoffs have already started to hit steel plants in Canada.<\/p>\n
Roughly 30 people were let go permanently late last week at Ivaco, an eastern Ontario steel plant run by Canada Metal Processing Group, the United Steelworkers union said in a media statement.<\/p>\n
The union, which represents more than 470 workers at the plant, said more than 120 people at the site received temporary, one-week layoffs on March 12 when the U.S. steel and aluminum tariffs went into effect.<\/p>\n
\u201cWe are calling on the federal government to take immediate and decisive action to protect the Ivaco workers \u2013 and all workers affected by the devastating U.S. tariffs \u2013 and to safeguard our industries,\u201d said Kevon Stewart, USW District 6 director, in a media statement.<\/p>\n
USW also said 20 people in supervisory, office and technical roles were given what appeared to be temporary layoffs at Algoma Steel in Sault Ste. Marie last week. The union added it was not clear what role tariffs were playing in the layoffs.<\/p>\n
Algoma Steel Group Inc. CEO Michael Garcia his company is in the midst of \u201caggressive\u201d cost cuts as it copes with uncertainty caused by the ongoing trade war.<\/p>\n
On the company\u2019s quarterly earnings call, Garcia said that Algoma is talking to federal and provincial leaders to determine what forms of government support might be available to help offset the tariffs.<\/p>\n
At an event alongside steelworkers in Hamilton, Ont., prime minister-designate Mark Carney said that proceeds from Canadian tariffs should go to supporting workers in affected industries and promised to \u201cdouble down\u201d on partnerships between the federal government and industry.<\/p>\n
Since the trade war began, NDP Leader Jagmeet Singh has been calling for Canada to change its procurement rules to require that federal building projects use 100 per cent Canadian steel and aluminum.<\/p>\n
Champagne took part in a Canadian delegation to Washington on Thursday to meet with Trump\u2019s commerce secretary to talk about the trade dispute.<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n