Tariff fight unites Hamilton, Buffalo groups

The two chambers of commerce were joined by government and labour leaders in Buffalo in denouncing the U.S. president’s actions

Chambers of commerce from both sides of the border are standing together in opposition of recently-imposed tariffs on steel and aluminum imports by the Trump administration.

Keanin Loomis, president and CEO of the Hamilton Chamber of Commerce, joined the head of the Buffalo Niagara Partnership, as well as government and labour leaders at Black Rock Canal Park in Buffalo on Wednesday, where they voiced concerns about the negative impact of the tariffs, which amount to 25 per cent for the steel industry and 10 per cent on aluminum.

“It’s just really good to know that at this time, when relations between the two countries are probably more fraught than they have been in two centuries, that in fact it hasn’t trickled down really beyond just the national leader level,” Loomis said after the news conference. “We have a tremendous amount of goodwill and friendship across the border and that ultimately is going to be what saves the day for Canada.”

Trump imposed the hefty tariffs on steel and aluminum imports into the U.S. from Canada, Mexico and the European Union for “national security” reasons about two weeks ago. All three areas had previously been exempt. Prime Minister Justin Trudeau retaliated with tariffs on dozens of U.S. products that will go into effect July 1 if the American tariffs are still in place.

“We believe that this will negatively impact both sides of the border,” Dottie Gallagher-Cohen, president and CEO of the Buffalo Niagara Partnership, told the news conference.

Forty per cent of the regional chamber of commerce’s members have customers or supply chain relationships in Canada, she said. The move is creating “great uncertainty” in the market, she said, noting it comes as the United States is trying to renegotiate NAFTA with Canada and Mexico.

The local chamber announced it entered into a strategic agreement with the Buffalo Niagara Partnership last year, which has lead to joint events, reciprocal memberships and cross-border business collaboration. But the most pressing need right now is to provide joint advocacy, Loomis said.

“Advocacy is the bread and butter of what a chamber of commerce does,” he said. “This is just a particularly opportune moment for us to do these kinds of things.”

Hamilton steelmakers, which make up 43 per cent of Canada’s steel, have a huge stake in what has developed into a trade war. Analysts say the Canadian steel industry and the aluminum sector can manage a short-term spike in prices, but if the tariffs drag on, there could be devastating effects to steel and aluminum companies, and higher prices for consumer goods.

ADF Group Inc. said uncertainty over U.S. steel tariffs reduced orders and has already prompted them to introduce work-sharing for employees at its Quebec plant. Locally, one of the chamber’s members has halted their shipments to the U.S. and several others are getting pushback from American recipients of steel, Loomis said.

Some U.S. purchasers are refusing to pay the tariffs when goods are crossing the border despite having previously come to pricing agreements, he said.

“We know that already there is a significant amount of disruption within the supply chain,” he said. “And that’s just going one way at this point in time — July 1 it’s going to be going both ways — so it will only get worse.”