Doubled tariffs raise concerns Canadian steel could be shut out of U.S., but some companies say they'll adjust

Jenna Benchetrit · CBC News

· Posted: Jun 04, 2025 4:00 AM EDT | Last Updated: 6 minutes ago

With U.S. President Donald Trump's tariffs on alloy and aluminum now doubled, Canadian alloy businesses and manufacture leaders — already wounded by the archetypal tax — haved mixed reactions astir the hike.

Calling the interaction of the archetypal 25 per cent tariffs "devastating," after it resulted in job losses and a driblet successful shipments to the U.S., one alloy manufacture person says a 50 per cent tariff volition pb to a "dramatic acceleration" of those trends.

"At a 50 per cent tariff, we fundamentally see the U.S. marketplace closed — wholly closed, doorway slammed shut, if you volition — to Canadian steel," said Catherine Cobden, CEO of the Canadian Steel Producers Association.

"We can't vessel astatine 50 per cent. Perhaps we tin stockpile for a fewer days, but evidently we can't support producing if 1 of our large markets is shuttered."

WATCH | Trump signs bid to treble alloy and aluminum tariffs: 

Trevor Borland, the president and proprietor of Pacific Bolt Manufacturing successful Langley, B.C., says his institution imports earthy alloy from U.S. states similar California and Ohio to manufacture its fastener products.

With the outgo of that worldly taxable to Trump's tariffs, and the earthy alloy manufacture mostly concentrated successful cardinal Canada, the institution has pivoted to buying alloy from Quebec mills. But trucking dense materials crossed the state makes Pacific Bolt's cognition each the much expensive.

"The situation is, from a outgo constituent of view, however bash we enactment competitory with that other outgo successful transportation?" Borland said. The U.S. utilized to marque up five to 10 per cent of its wide sales, but Trump's tariffs person "vaporized" that income.

The institution had nailed down a program to negociate the archetypal 25 per cent tariffs, but Borland worries that the hike to 50 per cent — announced connected Friday and imposed connected Wednesday conscionable aft midnight — could paralyze his suppliers and customers. 

"Most companies conscionable don't person that benignant of currency laying around, to wage these benignant of tariffs," helium said. With the barroom changing truthful frequently, "it makes it astir intolerable to bash immoderate benignant of strategical readying erstwhile you person nary thought what the aboriginal is gonna bring you."

Other companies accidental they person the wiggle country to withstand the double tariffs.

Parag Shah, the president of steel cabinetry shaper NewAge Products, observed that income person plateaued arsenic immoderate customers clasp disconnected connected large purchases. "We're trying to devour arsenic overmuch of the outgo arsenic possible," helium said.

But the tariffs are present portion of the company's outgo operation successful the aforesaid mode that logistics, packaging and shipping are, helium told CBC News.

The Toronto-based institution produces immoderate of its goods overseas and past ships them to the U.S. and different markets. They wage a tariff connected the alloy components successful those products erstwhile they participate the U.S. 

"It's a large jump, but astatine the aforesaid time, we're a precise agile institution successful presumption of the mode we nutrient our goods and root our goods," helium said, adding that the institution has been "constantly adjusting" implicit the past respective years.

"I deliberation the biggest situation for a concern is it's happening truthful quickly. Usually there's much notice," helium said. "But it is what it is. You conscionable gotta rotation with the punches."

'Steel dumping' remains a concern

Yet the doubled tariffs person the alloy industry sounding the alarm connected different long-festering issue.

Industry leaders person alleged for years that overseas steelmakers are selling alloy into the Canadian marketplace astatine ultra-low prices, a signifier commonly known arsenic "steel dumping." 

Michael Garcia, CEO of steelmaker Algoma Steel, said in an interview with the Globe and Mail this week that existing tariffs had already done sizeable harm to the company's revenue, and that a treble tariff would marque its U.S. concern "commercially unviable."

Yet helium suggested that existing U.S. tariffs are lone fractional the battle, with alloy dumping worsening the already challenging marketplace conditions successful Canada. Garcia said the institution is losing much wealth present than it is successful the U.S. arsenic a effect of the practice.

A typical for Algoma Steel declined to remark erstwhile reached by CBC News.

Barry Zekelman, the CEO of Canadian alloy tubing manufacturer Zekelman Industries, has agelong warned astir alloy dumping into Canada.

He reiterated those concerns past week during an online forum with Steel Market Update, accusing China, of rerouting inexpensive alloy into the Canadian marketplace done Vietnam, Thailand and South Korea. China is present taxable to a 25 per cent alloy tariff from Canada. 

WATCH | Zekelman explains 'steel dumping' successful 2019 interview:

The Canadian International Trade Tribunal is liable for investigating complaints related to the practice, and is currently reviewing a fig of progressive cases. It works successful conjunction with the Canada Border Services Agency, which issues anti-dumping duties.

Last month, the CBSA launched its own investigation into respective countries, including China, to find whether the anti-competitive practice is being carried retired successful Canada. CITT will grip the preliminary inquiry, with a determination to beryllium released successful July, and CBSA expects to contented its ain decision in August.

Cobden, the Steel Producers Association main executive, says borderline tariffs connected "unfair traders" engaged successful alloy dumping should be the archetypal bid of concern erstwhile it comes to addressing the issues plaguing Canada's home industry.

She says the manufacture is asking the national government to both lucifer the U.S.'s 50 per cent alloy tariffs, and to enforce tariffs that will "prevent diversion of alloy into our country."