Double tariff increases worries Canadian steel can be closed outside us, but some companies say they will adjust
With US President Donald Trump’s tariff on steel and aluminum Now doubledLeaders of Canadian Steel Business and Industry – already injured by early tax – mixed reactions about hike.
The impact of the initial 25 percent tariff “disastrous,” After this results Causing And A drop in shipment For the US, a steel industry leader says that 50 percent of tariffs will lead to “dramatic acceleration” of those trends.
Catherine Cobden, CEO of Canadian Steel Producers Association, said, “In 50 percent tariffs, we originally consider closing the US market – completely closed, the door is closed, if you would do for Canadian Steel,” said CEO COBDen, CEO of Cennadian Steel Producers Association.
“We cannot ship at 50 percent. Perhaps we can stockpile for a few days, but obviously we cannot produce if one of our major markets is closed.”
US President Donald Trump has officially signed an announcement to increase steel and aluminum tariffs by 50 percent, which is above the already declared 25 percent of tariffs. Despite another round of interaction between Canadian officials and their American counterparts, Canada is not exempted from Tariff Hike.
Chairman and owner of Pacific Bolt Manufacturing at Langley, BC, Trevor Borland, says his company imports raw steel from American states such as California and Ohio to manufacture its fastener products.
With the cost of that material under Trump’s tariff, and the raw steel industry focused in the middle Canada on a large scale, The company has published to buy steel from Quebec Mills. But heavy materials across the country makes the operation of trucking pacific bolts more expensive.
“The challenge is how we remain competitive with that extra cost in transportation, from the cost of cost?” Borland said. The US was five to 10 percent of its overall sales, but Trump’s tariff has “evaporated” that income.
The company had made a plan to manage the original 25 percent tariff, but Borland is worried that the hike announced up to 50 percent – on Friday and was imposed on Wednesday after midnight on Wednesday – can paralyze its suppliers and customers.
“Most companies do not have that type of cash laying to pay this type of tariff,” he said. With repeated changes with the bar, “it makes it almost impossible to do any type of strategic plan when you don’t know what the future is going to bring you.”
Other companies say that they have a wigley room to face double tariffs.
Parag Shah, president of the steel cabinetry manufacturer News Products, saw that the sales had stopped some customers from big purchases. “We are trying to eat as much cost as possible,” he said.
But tariffs are now part of the company’s cost structure, similarly logistics, packaging and shipping, he told CBC News.
The Toronto -based company produces some of its goods abroad and then takes them to the US and other markets. They pay a tariff on steel components in products when they enter America
He said, “This is a big jump, but at the same time, we are a very agile company in terms of how to produce our goods and the source of our goods,” he said that the company has been “continuously adjusted” over the years.
“I think the biggest challenge for a business it is happening so early. Usually there is more notice,” he said. “But what is this. You will just roll with punches.”
‘Steel Dumping’ is a concern
Nevertheless, in double tariffs, there is an alarm on the issue that has been coming in the steel industry for a long time.
Industry leaders have been alleged for years that foreign steel manufacturers are selling steel in the Canadian market at ultra-lo prices, usually known as “steel dumping”.
Steel manufacturer Algoma Steel CEO Michael Garcia said in an interview This week with globes and mail that the current tariff had already damaged the company’s revenue significantly, and that a double tariff would make its American business “commercially”.
Nevertheless, he suggested that the current American tariffs are only half the battle, with steel dumping already deteriorating challenging market conditions in Canada. Garcia said that the company is losing more money here than being in the US as a result of practice.
A representative of Elgoma Steel refused to comment on arrival by CBC News.
Barry Zekelman, CEO of Canadian steel tubing manufacturer Zekelman Industries, has long warned about steel dumping in Canada.
He repeated those concerns last week during an online platform with steel market updates, Accusing ChinaTo resume cheap steel in the Canadian market via Vietnam, Thailand and South Korea. China is now under 25 percent of steel tariffs from Canada.
Zekelman Industries CEO Barry Zekelman explains why Canada and America need to stop steel dumping from other countries.
Canadian International Trade Tribunal is responsible for investigating complaints related to practice, and is Currently reviewing Many active cases. It works closely with the Canada Border Services Agency, which releases anti-dumping duties.
Last month, CBSA Start your investigation In many countries, including China, to determine whether anti -competitive practice is being done in Canada. The CITT will handle the initial inquiry, with the decision to be issued in July, and the CBSA expects to release its decision in August.
Cobden, Chief Executive Officer of Steel Producers Association, says that “unfair traders” engaged in steel dumping should be the first order of trade to address issues addressing the domestic industry of Border Tariff, Canada.
She says that the industry is asking the federal government to match both the US 50 per cent steel tariffs, and to put tariffs that will “stop the steel turn in our country.”
