Time to help Canadian industries hit by Trump’s tariffs

There’s one big item still missing from Justin Trudeau’s action plan for fighting those nasty U.S. tariffs on Canadian steel and aluminum headed into the United States.

The prime minister and his governing Liberals have hit back with tariffs of their own on $16.6 billion worth of U.S. imports into Canada. They’re working overtime to convince sane, political minds south of the border to resist President Donald Trump’s misguided, unilateral assault on the rules-based system of global trade.

Just as important, the federal government is teaming up with Canada’s European and Mexican trade partners in an effort to knock down the protectionist wall Trump’s building around the United States.

Trudeau’s carefully calibrated and proportional response to Trump’s tariffs should reassure Canadians, particularly Canadian workers and business leaders, that the Liberals have their backs. Take that, Mr. President.

But the grand strategy lacks one necessary component. The prime minister has yet to deliver on his promise of federal assistance to Canada’s steel and aluminum industries. It’s time for him to do so.

You don’t need to be a fan of government handouts to the privileged private-sector few or a cheerleader for cocky governments picking corporate winners and losers to agree this is an extraordinary situation that justifies extraordinary action.

Canada’s steel and aluminum industries play a crucial role in the national economy. They’re the biggest suppliers of these products to the United States, with annual shipments worth $20 billion.

The tariffs which came in June 1 threaten to slash these sales and jeopardize the jobs of 20,000 people directly employed in the steel industry, 10,000 in the aluminum industry and more than 120,000 jobs indirectly working for these sectors.

Unless Trump relents on the tariffs — and with him anything is possible — Canada’s steel and aluminum industries face major change and painful adjustments. Finding new foreign markets makes sense, but will take time and not necessarily compensate for lost U.S. sales. A lot of Canadian jobs will be lost in the coming years and our economy will suffer if Trudeau sits on his hands.

The short-term situation is equally fraught as steel and aluminum manufacturers struggle to cope with tariffs of 25 and 10 per cent respectively while still delivering orders they are committed to in the United States. That’s where federal financial support can help. The Quebec government has already announced $100 million in loans and loan guarantees to smaller aluminum producers in the province, reasoning that for now, at least, the bigger companies can cope. Some Quebec aluminum producers have already reported cancelled sales and are entering an unwanted slowdown.

The federal cabinet met earlier this month to explore options for providing aid. Caution and care can be laudable virtues. But we’re looking at an emergency here. Time — and a timely delivery of support — do matter.

Trudeau can cite many precedents for intervention. After the 2008-09 financial crisis decimated vehicle sales, the federal and Ontario governments contributed $13.7 billion to General Motors and Chrysler, a cash transfusion that helped save them from possible bankruptcy and the national economy from what could have been a full-scale depression.

And just one year ago, Ottawa announced an $867million package for Canadian softwood lumber producers after they were stung by U.S. tariffs.

By all means, the steel and aluminum producers should be consulted to determine what they need and when they need it.

But Trump’s tariff war is resulting in Canadian casualties. Trudeau should tend to them.