Hamilton braces for tariffs
Workers ‘trying not to panic’ as uncertainty looms over industry
Thousands in the area owe their paycheques to the steel industry,
The 25-per-cent tariff on Canadian steel imposed at midnight Thursday will inevitably cause U.S. border chaos for Hamilton steelmakers as American officials struggle to enforce the new rules, Hamilton’s Chamber of Commerce says.
“I hate to be alarmist but I feel there is going to be a major backup at the border,” says Keanin Loomis, the CEO of the Hamilton Chamber. “Think about it. When that first truck crosses the border, is the border patrol agent going to be ready? And the effects after that are only going to be compounded.”
But how the trade sanctions will play out over the coming weeks is far from certain.
Analysts say the Canadian steel industry — as well as the aluminum sector that will be slapped with a 10-per-cent tariff — can manage a short-term spike in prices. But if the tariffs drag on amid stalled NAFTA talks, there could be devastating effects to steel and aluminum companies, higher prices for consumer goods and even a full-scale trade war.
U.S. President Donald Trump announced Thursday morning that for “national security” reasons he was imposing the tariffs on Canada, Mexico and the European Union, all of which he had previously exempted.
Prime Minister Justin Trudeau said the tariffs were “totally unacceptable” and retaliated with tariffs on dozens of U.S. products to go into effect July 1 if the American tariffs are still in place.
Loomis says Hamilton has more than 9,000 jobs in steelmaking, with Arcelor-Mittal Dofasco being the largest employer with nearly 5,000.
He said considering spinoff jobs, more than 40,000 people owe their paycheques to steel in the Hamilton area. An estimated 43 per cent of Canada’s steel is made in Hamilton.
Gary Howe, president of Local 1005 that represents Hamilton workers at Stelco, says, “we’re trying not to panic” and he noted that most of Stelco’s business is in Canada and would not be affected by the tariff.
Hamilton Mayor Fred Eisenberger said “in terms of direct employment impact, nobody knows how this is going to play out.
“But this is bad for not only the Canadian economy but the American economy as well,” he said. “Canada’s closest ally is the United States and I am still hopeful that saner heads will prevail.”