Steel makers urge quick retaliation

Trudeau asked to move faster on Canada’s response to U.S. tariffs

OTTAWA— Canadian steel producers are pressing Prime Minister Justin Trudeau to move more quickly to impose retaliatory tariffs on U.S. steel and aluminum, warning that companies in Canada are already losing business because of Washington’s trade moves.

The producers met with Trudeau Monday afternoon and emerged saying they had made the case for Canada to act faster.

“I think we’d like to have the tariff put in place as quickly as we can,” said Joseph Galimberti, president of the Canadian Steel Producers Association.

Galimberti noted that there are tariffs on Canadian exports of steel and aluminum to the U.S., but nothing yet on American exports entering Canada, even as producers in this country begin to feel the bite of Washington’s trade measures.

“We’re seeing customers in steel right now who are changing orders, putting orders on hold,” he said. “Companies are experiencing damages and interruptions today. Supply chains are going to change going forward.”

The Trump administration last week announced it was imposing 25-per-cent steel tariffs and 10-per-cent aluminum tariffs on Canada, Mexico and the European Union. The Liberal government hit back on Thursday, announcing it would impose retaliatory tariffs on U.S. steel and aluminum, as well as on a host of other consumer products — but not until July 1. The government justified the delay, saying it wanted to consult first on the potential impacts of its tariff decision.

Galimberti said Canada had responded in a “meaningful way” but added, “we’d like to see it imposed quickly.” He said the federal government could immediately slap reciprocal tariffs on U.S. steel and aluminum while taking time to consult on the other products.

He said the 25 per cent tariff on Canadian steel destined to the largest export market is a “dire situation.” However, Galimberti said Canadian companies aren’t yet asking for federal aid because they are still assessing the impact of the tariffs on the steel industry, which he said employs 23,000 workers and supports 100,000 indirect jobs.

“I think they appreciate our circumstance and I think that they understand clearly we are going to see a reaction quite quickly from the economy,” he said.

Conservative Leader Andrew Scheer pressed Trudeau during Question Period, asking why the government had delayed its retaliatory action. But Trudeau justified the delay, saying the government had to consult first on the potential impact of its own actions.

Galimberti said that he and company CEOs will be meeting in the coming days with Finance Minister Bill Morneau, Economic Development Minister Navdeep Bains and others, including opposition MPs.

In Montreal on Monday, International Trade Minister François-Philippe Champagne took part in a gathering of aluminum industry representatives from G7 countries.