Freeland to visit Stelco, give details on tariffs

Foreign Affairs Minister Chrystia Freeland is expected to announce details about retaliatory tariffs against the U.S. and an adjustment package for the Canadian steel industry during a visit to Stelco Friday.

The stopover comes after steel industry representatives told a House of Commons committee in Ottawa on Tuesday about devastating effects from a 25 per cent tariff imposed in the U.S. on Canadian steel June 1.

Sean Donnelly, the president and CEO of Arcelor Mittal Dofasco, told the Standing Committee on International Trade that the steelmaker is reviewing $750 million in investments and could lay off 1,000 workers if the tariffs continue, according to media reports.

A company official from Stoney Creek-based Janco Steel Ltd., told committee members its U.S. business has fallen by 60 per cent in June since the tariffs were implemented. He said the firm had imposed a hiring freeze and may have to issue layoffs, Dow Jones Newswires reported.

Hamilton has more than 9,000 jobs in steelmaking, with Arcelor Mittal Dofasco being the largest employer with nearly 5,000. An estimated 43 per cent of Canada’s steel is made in Hamilton.

A spokesperson for Freeland said she will be accompanied by Minister of Innovation, Science and Economic Development, Navdeep Bains, and Minister of Employment, Workforce and Labour, Patty Hajdu.

Joseph Galimberti, from the Canadian Steel Producers Association, said in an interview that “I expect (Freeland is) going to talk about adjustment packages to help companies cope and readjust supply chains. I think there will be assistance for employees, for anyone who experiences a layoff or duress in the workplace as a result of the U.S. tariff.”

He noted “the tariffs have had a pretty significant immediate impact. We have had members unloading trucks because of stopped orders and others have shifted work to affiliates in the U.S.”

Gary Howe, the president of United Steelworkers Local 1005, said of the expected announcement, “It’s about time they did something.”

Coincidentally, there will be a demonstration at the nearby Max Aicher North America plant. The mill, once owned by U.S. Steel Canada, was sold to the German steel maker in 2010. Workers have been locked out for five years.