Industry Minister pushes for Canadian steel and aluminum priority as Ottawa responds to US tariffs with countermeasures
Canada is prioritizing investments in projects that primarily use Canadian steel and aluminum as part of its response to the US-imposed tariffs.
Industry Minister François-Philippe Champagne announced the move on Wednesday, stating that it addresses the “unfair and unjustified” 25 percent tariffs on steel and aluminum imposed by US President Donald Trump.
The tariffs, which took effect the day before, prompted Canada to implement its own 25 percent tariffs on US$29.8bn worth of American goods, beginning just after midnight Thursday.
Champagne emphasized that Canadian steel and aluminum play a key role in supporting US industries, particularly defence and automotive manufacturing.
“They are also essential for securing our collective energy future and generate high-quality jobs on both sides of the border,” he said in a statement published Thursday morning.
Canada remains the largest US supplier of both steel and aluminum, with about a quarter of all steel used in the US being imported.
The Trump administration has used tariffs to push the auto sector to move production to the US. Industry leaders have warned that these measures could severely impact steel producers and related businesses in both countries.
“These 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,” said Canadian Steel Producers Association president and CEO Catherine Cobden in a media statement Wednesday.
Algoma Steel Group Inc. is already feeling the effects of the trade war. CEO Michael Garcia stated on Thursday that the company is implementing “aggressive” cost-cutting measures to cope with the uncertainty.
Speaking during the Sault Ste. Marie, Ontario-based company’s quarterly earnings call, Garcia said that Algoma is in discussions with federal and provincial leaders to explore possible government support to help offset the tariffs.
In Hamilton, Ontario, prime minister-designate Mark Carney addressed steelworkers on Wednesday, saying that the proceeds from Canada’s tariffs should go toward supporting workers in affected industries.
He also pledged to “double down” on partnerships between the federal government and industry.
NDP Leader Jagmeet Singh has continued to push for changes to federal procurement rules.
Since the trade war began, he has called for a requirement that all federally funded building projects use 100 percent Canadian steel and aluminum.
Champagne is in Washington on Thursday as part of a Canadian delegation meeting with the US commerce secretary to discuss the trade dispute.
