Canadian Coalition for Construction Steel urges caution on tariffs, Tuotas on non-8.S. steel

1ow that the *overnment of Canada has retaliated against unfair 8.S. tariffs on Canadian steel and aluminum, the Canadian Coalition for Construction Steel is urging the *overnment to act cautiously before taking further action, including safeguards, which could severely disrupt the construction industry in Canada.

"We support the federal government’s measured response to the 8.S. tariffs and we understand the difficult choices the *overnment had to make in deciding which products to target,´ says $noop .hosla, the 0anaging Director of 0idvalley Rebar, a construction steel fabricator and Coalition member in Surrey, %.C. ³However, we are worried that the *overnment is considering safeguard measures ± some combination of tariffs or Tuotas ± on imports of rebar and other construction steel from Canada’s other trading partners.´

Canada’s construction sector is vital to the Canadian economy, employing nearly . million Canadians, making it the largest employment sector for Canada’s middle class. 7he industry depends heavily on imported steel products. Canada’s steel producers only have the capacity to supply roughly

per cent of Canadian demand for construction steel. Canada has historically relied on the 8nited States for half of the remaining demand. )or the rest, Canada has always needed and will continue to need steel imported from outside of 1orth $merica. 7hat need is more acute than ever now that 8.S. imports are subject to Canadian retaliatory tariffs.

Construction steel prices have risen dramatically in the past six months and are already near record highs. :ithout access to imports from other countries ± which is what a global safeguard would restrict ± the Canadian construction sector will face shortages of many types of steel and still higher prices.

9ital infrastructure projects across the country and residential construction for our growing population, which depend on an adeTuate and affordable supply of steel are all at risk. )or example, the Champlain %ridge replacement in 0ontreal reTuires steel plate and stainless steel rebar that is not produced in Canada. 7he Residential Construction Council of 2ntario predicts that the cost of an average condominium unit could rise by as much as , - , due to increased steel costs.

Supply issues for construction steel are particularly acute for %ritish Columbia and $tlantic Canada. 2verland transportation costs in Canada are prohibitive and the vast majority of Canadian production is located in central Canada, far from many Canadian markets.

7he CCCS is therefore urging the *overnment of Canada to engage in broad consultations with steel users and to make sure it has the full picture before imposing further supply restrictions on Canadians.

:alter .oppelaar, C(2 and Chairman of :alters *roup, a steel fabricator and Coalition member in Hamilton, 2ntario, offers a stark warning ³0any countries are affected by the 8.S. tariffs, but putting up barriers to construction steel from those countries will be a self-inflicted wound to our economy. It will mean cancelled projects and higher construction costs for bridges, roads, and new homes. $nd for every job potentially protected in a Canadian steel mill, or more downstream jobs will be put at risk.´