Freeland: ‘We will not back down’ to U.S. tariffs
Feds announce $2 billion to help steel and aluminum sectors weather the storm
“The U.S. tariffs leave Canada no choice but to defend our industries, our workers and our communities ...” CHRYSTIA FREELAND Minister of Foreign Affairs
THREE
MEMBERS of Justin Trudeau’s cabinet came to Stelco in Hamilton Friday to announce up to $2 billion in aid to ward off economic hardship from the Trump government’s tariffs on steel and aluminum.
In a noisy, sweltering steel mill, against a backdrop of steelworkers in orange work outfits, helmets and safety glasses, Foreign Affairs Minister Chrystia Freeland told a news conference the federal government “will not escalate and we will not back down” from the 25 per cent tariff on steel and 10 per cent tariff on aluminum imposed by the United States on June 1.
She announced $16.6 million in countermeasures — which cover a wide range of items from steel and aluminum to ballpoint pens and toilet paper — that will kick in Monday. The products will carry either a 25 per cent of 10 per cent tariff.
“Where possible, we have sought to put products on the list that can be easily sourced from either from Canadian or non-U.S. suppliers,” she said.
“The U.S. tariffs leave Canada no choice but to defend our industries, our workers and our communities, and I can assure you that we will maintain a firm resolve,” she said. “I remain confident in the end that common sense will prevail.”
Canada has launched a legal challenge under World Trade Organization and NAFTA rules, but in the meantime, she said, the government wants to protect companies and workers through compensation and modifying employment insurance program rules to help workers.
Innovation Minister Navdeep Bains — who attended the news conference with Employment Minister Patty Hajdu — said: “The challenge for us now as we face these unjustified and counterproductive tariffs is to make sure our steel and aluminum industries continue to remain competitive, innovate and create middle-class jobs for Canadians.”
The federal support, he said, is intended to help the sectors “not only adjust to the unfair and difficult economic conditions, but also continue to innovate and thrive under these new circumstances.”
The $2 billion in federal measures comes after steel industry representatives told a Commons committee Tuesday about devastating consequences if the Trump tariffs continue indefinitely.
ArcelorMittal Dofasco’s president Sean Donnelly, for one, told the Standing Committee on International Trade on Tuesday the steelmaker 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 company employs nearly 5,000 workers, in a local steel sector of 9,000.
ArcelorMittal Dofasco would not comment on the federal government moves Friday or elaborate on its Tuesday comments.
Stelco CEO Alan Kestenbaum quietly watched the morning conference at the mill off Depew Street without addressing the crowd. Asked afterward about his thoughts on the government measures, he would not comment.
An hour later, Stelco issued a one-line statement: “While our industry and all Canadians would benefit most from a removal of all tariffs on both sides of the border, the measures announced today are vital to protect jobs and investment in Canada during these unprecedented times.”
Ken Neumann, United Steelworkers (USW) national director, said: “The counter-tariff and community support measures announced today by the federal government is a good first step that will need to be expanded if the trade dispute continues beyond the short-term.”
Gary Howe, president of the Steelworkers Union Local 1005, said: “We’re going to have to see what the details are to see whether it will protect jobs ... Two billion dollars could be helpful. It depends. The devil is in the details.”
Both Hamilton Mayor Fred Eisenberger and city steel committee chair Coun. Sam Merulla said they support the federal handling of the issue.
“Hamilton enthusiastically endorses the tariffs,” said Eisenberger, adding: “Our city has weathered challenging times before. Together, with the support and backing of our federal and provincial partners, I believe we will come through this tariff dispute as well.”
McMaster University business professor Marvin Ryder said, “they are trying to do the right thing at the right time in the right way ... You don’t want to panic in the face of something like this.”
Ryder said there may be a silver lining in that a trade war with the U.S. will force Canadian companies to pursue other world markets and become stronger and more resilient as a result.
“It’s been easy to trade with the U.S. because it is only 50 miles down the road, but when we do this, we ignore places like India and China and other developing markets that will dominate the century we are in right now.”