Hundreds of Canadian workers have already been laid off from steel plants as President Trump’s tariffs squeeze the industry.
At least 200 Canadian members of the United Steelworkers – North America’s largest private-sector union – have lost their jobs thus far, according to Marty Warren, the group’s national director. United Steelworkers has more than 225,000 members in Canada.
And Canadian companies have not been shy about placing the blame on Trump’s stiff tariffs – a 25% levy imposed on all steel and aluminum imports on March 12.
Canada Metal Processing Group, for example, announced a workforce reduction of 140 production and office employees due to “the threat of incoming tariffs from the United States on steel and steel derivatives,” the company said in a Feb. 24 press release before the taxes took effect.
The workforce reduction is a combination of permanent layoffs, temporary layoffs, work share and retirements, a spokesperson told Reuters. The company is freezing hiring for new and vacant roles.
The firm said it would also take cost-cutting measures and cancel or pause some projects.
Ontario-based Algoma Steel has also laid off about 20 workers, and could stand to lay off more, CEO Michael Garcia told Reuters.
Warren said he expects “a tidal wave” of layoffs to follow next week when Trump’s 30-day pause on further tariffs on Canada and Mexico, as well as reciprocal taxes, ends.
Tensions brewed between the US and Canada — the US’ largest steel supplier — as Trump took aim at former prime minister Justin Trudeau and made social media posts calling for the northern neighbor to become the 51st state.
The president earlier this week signaled that he may take a more targeted approach to the April 2 tariffs – possibly excluding sector-specific tariffs while focusing more on reciprocal taxes, according to Bloomberg and The Wall Street Journal.
“I may give a lot of countries breaks,” Trump told reporters Monday in the Oval Office.
But it still remains unclear if he’ll be moving forward with the hefty across-the-board levies initially threatened against Canada and Mexico.
The incoming round of tariffs will “probably affect 100,000 of our members,” Warren said.
Scott Noseworthy, a shredder operator who has worked at a Canada Metal Processing Group plant in eastern Ontario for four years, told Reuters that Trump’s tariffs “kind of hit us and brought us to a halt.”
He plans to return to work this week, but only for maintenance and clean-up work. After those tasks are finished, it’s unclear whether he’ll be able to return to his role.
“It’s hectic. You’re not sure whether or not you’re going to have work one week to the next,” said Noseworthy, who added that the uncertainty is difficult with a two-year-old daughter at home.
Prime Minister Mark Carney, who was sworn in earlier this month, has announced measures to help impacted steel and aluminum workers recover, like earlier access to employment insurance and a work-share program providing benefits to employees whose hours have been reduced.
But industry giants have been calling for more action, including reforms to insurance that would allow laid-off workers to access it for longer.
“While it is impossible at this juncture to predict how long these actions by the United States will last, the Canadian government must be prepared to react quickly to safeguard the long-term viability of Canadian steel product manufacturers, and the collective job security of our employees,” said Matt Walker, president of Canada Metal Processing Group, in the firm’s February press release.
With Post wires
