U.S. steel tariffs will hit Niagara business
Welland stainless steel manufacturing plant vice-president calls situation ‘crazy’
Tim Clutterbuck is hoping “crazy” tariffs being imposed on Canadian steel being exported to the U.S. won’t remain in place for long.
“I just find it to be so far from where we’ve been as two nations that I just can’t see this lasting. I think calmer heads have to prevail,” said Clutterbuck, executive vice-president at ASW in Welland.
“Somehow, they have to get back at it and figure out what the best solutions are … This just makes no sense for anybody.”
Last week, the U.S. government began imposing tariffs on steel and aluminum manufactured in Canada, as well as Mexico and Europe.
Because most of the stainless steel ASW’s 125 workers produce is sold to the U.S., Clutterbuck is hoping the trade dispute is resolved soon.
“As it sits right now, I don’t intend to lay anybody off. But we’ll have to evaluate this over the next few weeks,” he said.
“It’s crazy. It’s a game that’s more about political promises. Obviously, (U.S. President Donald) Trump is propping up domestic steel, which everybody in the U.S. wants. But go after the people who are actually hurting domestic steel.”
When it comes to the stainless steel that ASW produces, Clutterbuck said it’s European manufacturers that are undercutting local producers.
“Italian stainless steel comes into North America at very cheap prices.
I can understand why there’s a problem with those imports, but certainly we’re been fairly competitive and a lot of times I’m told I’m higher priced than the domestic guys,” Clutterbuck said.
“It’s not like we’re the problem. The problem comes from different parts of the world that they’re trying to address.”
Greater Niagara Chamber of Commerce also has “grave concerns” about the tariffs, that would have a “devastating impact on the Canadian steel and aluminum industries,” the organization said in a media release.
Although Trump has in the past targeted China regarding trade issues, the GNCC statement points out that Canada, the most important ally and trading partner with the U.S., will be the most-affected country under the tariffs.
Clutterbuck also said that U.S. industries won’t be unscathed.
ASW, for instance, is now owned by U.S.-based AmpcoPittsburgh Corp., which purchased the company in November 2016 for $13.1 million.
“This is not just hurting Canadians. This is hurting Americans because the products I sell them, they can’t make,” he said. “If they can’t get it domestically, other than to buy it from a competitor, which isn’t the most economically viable route, then they have a challenge.”
Meanwhile, he said U.S. consumers might ultimately end up paying the cost of the tariffs.
About half the aluminium used in the U.S. is from Canadian manufacturers.
“If the Canadian aluminium is exported at 10 per cent higher price, then the U.S. will pay it until they find an alternative — which I doubt they’ll find easily without starting up old, unreliable mills,” Clutterbuck said.
“You’ll see the prices of products going up eventually that will create an inflationary impact.”