B.C. company embroiled in U.s.-canada steel and aluminum trade war
Amid “record high” Canadian exports in April and a trade surplus with the U.S. for the first time in six months, those in the province’s metal industry brace for rough seas ahead as the Canada-u.s. trade heats up.
According to the latest report released by Statistics Canada on numbers in April, Canada’s trade deficit narrowed from $3.9 billion in March to $1.9 billion in April. Exports rose 1.6 per cent to a record $48.6 billion while imports were down 2.5 per cent to $50.5 billion.
Out of the total exports, the metal and non-metallic mineral products saw one of the biggest increases at 9.1 per cent to $5.8 billion.
But this rosy outlook could be short-lived.
Local industries have been hit hard since U.S. tariffs on Canadian steel products at 25 per cent and aluminum products at 10 per cent were imposed on June 1.
Ari Burstein, president of Marcon Metalfab in Delta that produces steel and rubber products for industries such as transportation and building construction, said the company relies much on raw steel shipped in from the U.S. where prices have jumped because of limited supply flowing into the U.S. market from overseas.
Burstein anticipates that once the Canadian government imposes retaliation tariffs, the company will not be profitable on their contract to build guardrails for 50 highway bridges around Calgary.
Sourcing from other countries at thestar.com/vancouver