Steel makers seek relief,

OTTAWA • Canadian steel producers are pleading with Ottawa for relief from U.S. import tariffs, with some companies saying Canada’s plan to introduce its own levies next month could further diminish their already battered bottom lines.

The comments came during House committee hearings in Ottawa Tuesday, where cash-flowstarved Canadian firms warned that U.S. President Donald Trump’s tariffs on steel and aluminum had already stalled major capital investments in Canada, and could lead to widespread layoffs.

Conrad Winkler, the president and CEO of Evraz North America, said U.S. tariffs have had a “tremendous immediate impact” on the firm’s operations, and have even caused delays in U.S. pipeline projects, saying there has been a “reluctance” to ship large diameter pipe south of the border due to tariffs. The company has had to reconsider planned capital investments, he said.

The sentiment was shared by Sean Donnelly, CEO of ArcelorMittal Dofasco, Canada’s largest steel producer, who said the firm is reviewing $750 million worth of potential investments, and could lay off 1,000 workers if Trump’s tariffs persist without support from Ottawa.

The comments, made to the House international trade committee, coincided with a meeting between provincial finance ministers and federal Finance Minister Bill Morneau to discuss potential responses to Trump’s trade policies.

Morneau told reporters the issue was “critically important” but did not specify how Canada will respond. He said additional supports for steel firms could be announced in coming days.

Some observers have suggested a “support package” similar to what Ottawa provided softwood producers last year, which included loan guarantees and other backstops. Media reports suggest Morneau is crafting anti-dumping provisions to stem cheap steel imports from Asia and elsewhere, which have already flooded into Canada.

Some firms cautioned against counter tariffs, saying additional levies threaten to force them out of business in months.

“We simply will not be able to continue operating,” said Robert Dimitrieff, president of Patriot Forge Co. in Brantford, Ont.

The company, which imports specialty steels from the U.S. to manufacture parts for steam turbines, gas compressors, military equipment and other products, would face an average of $682,000 in monthly tariffs if Canada introduces its own levy on goods from the U.S., Dimitrieff said. Patriot employs around 250 people.

Other firms said Canada’s tariffs would simply double the pain caused by the Canada-U.S. trade war, forcing them to pay levies on products as they both enter and leave Canada.

“This plays right into president Trump’s agenda,” said Stephen Young, a manager at Janco Steel Ltd., a small steel manufacturer based in Hamilton.

Young said “absolutely irreparable damage will be done” to the steel industry without its U.S. customer base, and called for an “immediate plan about how we will remain competitive.”