Steel Summit hears about tariff woes with ‘prosperity at risk’

On Friday, Hamilton’s steel sector was put under the microscope in a one-of-a-kind event at City Hall.

A U.S.

BORDER STATE municipal leader told the Hamilton Steel Summit Friday that prosperity has been “put at risk” by the trade war between U.S. and Canada, and it has “negatively impacted the western New York and Southern Ontario economies.”

Erie County executive Mark Poloncarz said there

are many opponents to Trump’s tariffs in the U.S., with himself being among them.

“These tariffs are not solving anything, but are creating problems that did not exist before ... no one wins by engaging in a trade war,” said Poloncarz, a Democrat, who represents a community of more than one million people.

“We in western New York stand with you, our Canadian neighbours, in support of the ending of this unnecessary and inevitably fruitless trade war between two great peoples.”

Poloncarz was one of the speakers at the steel summit, an effort to show solidarity and find ways to help Hamilton’s steel sector, that has been turned into a highstakes bargaining chip in a trade war with the U.S.

Since June, the industry has been struggling with a 25 per cent tariff on sales to the U.S. amid rancorous NAFTA renegotiations that are continuing.

The tariffs have led to various displays of support in Hamilton, including appearances by Foreign Affairs Minister Chrystia Freeland in a Stelco steel mill in June and Finance Minister Bill Morneau in an ArcelorMittal Dofasco steel mill in August.

At Friday’s summit, more than 250 people packed city council chambers to hear political leaders, industry experts, steelmaker representatives and union leaders discuss tariff and other woes faced by the city’s steel sector.

Hamilton Coun. Sam Merulla, who organized the summit, says the event should be used as a springboard to create a bipartisan, united front of different levels of government, on both sides of the border, along with other stakeholders to find ways to mitigate “what could be a very significant economic hit.”

“I think the tariffs can be overcome by understanding that the impacts will be felt on both sides of the border,” he said.

He also is advocating a “Buy Canadian” campaign to help manufacturers in Canada who have lost business in the U.S.

Jason Thorne, Hamilton’s general manager of planning and economic development said in a statement, “We can’t stand idly by and watch this fundamental, key sector diminish because of U.S. tariffs.”

University of Toronto steel expert Peter Warrian predicted a new NAFTA will eventually be renegotiated and the tariffs on steel and aluminum lifted. But trade actions under Trump are far from over. He believes the next phase will involve quotas on Canadian steel in the U.S.

Brett House, vice-president and deputy chief economist, Scotiabank Global Banking and Markets, said Canada’s steel industry is relatively small but the ripple effects on the Canadian economy are huge.

Hamilton Mayor Fred Eisenberger noted 10,000 people work in the steel sector in the city and an estimated 40,000 in spinoffs.

“Thousands of current and retired steel workers contribute to our city in so many ways. They volunteer with local charities, support local programs and initiatives, and pay their taxes. They are a real and positive force behind our economy and the life of our city. When their livelihoods are under threat due to unfair tariffs, we need to do everything possible to stand up for them and their families,” he said.

Sault Ste. Marie Mayor Christian Provenzano said the 25 per cent tariff has been a “huge concern” in his city that has Algoma Steel as a major employer.