Hamilton steelworkers hang onto jobs for now but brace for impact as U.S. doubles industry tariffs
The U.S. doubled tariffs on steel imports to 50 per cent Wednesday
It's not clear what increased U.S. steel tariffs will mean for Hamilton, but workers and industry leaders agree it's nothing good.
"The fear is these additional tariffs might hurt Stelco's customers and their ability to sell to their U.S. customers," Ron Wells, who represents workers at that steel manufacturer, told CBC News Network Wednesday.
"The trickle-down effect could have adverse impacts on Stelco and our workforce."
U.S. President Donald Trump signed an executive order Tuesday applying a 50 per cent tariff to steel and aluminum Americans import. The order took effect Wednesday, doubling tariffs that had already been in place since March 12.
At Stelco — which has factories in Hamilton and Nanticoke, Ont., and is owned by American company Cleveland-Cliffs — Trump's tariffs have already had a big impact.
According to Ron Wells, president of United Steelworkers Local 1005, his employer lost all its U.S. business, representing about 30 per cent of its work. It made back 10 per cent with additional Canadian customers, Wells said. Now, the fear is companies that buy from Stelco then sell to the U.S. will find it harder to do so and therefore buy less.
There haven't been job losses at Stelco, Wells said, though in Hamilton, the company isn't hiring temporary summer staff like usual. There are about 650 hourly workers in the bargaining unit in Hamilton, 1,100 in Nanticoke, and a few hundred non/union managers who work at Stelco, he said.
Overall, Wells said, workers he represents seem more upset than scared right now. "No one needs this additional stress or frustration."
CBC Hamilton contacted Stelco for comment on the increased tariffs but did not receive a response.
MP says 10,000 Hamiltonians directly employed by steel sector
John-Paul Danko, newly elected MP for Hamilton West—Ancaster—Dundas said uncertainty is causing "immense stress and anxiety for Hamilton families."
The steel industry employs over 10,000 workers directly and there are up to 40,000 local jobs "at risk in associated industries" due to the tariffs, the former city councillor said in a statement Wednesday.
Hamilton Mayor Andrea Horwath also issued a statement condemning the tariffs, saying they "put thousands of good jobs at risk," delay investment and "threaten the stability our industries need to thrive."
"The longer this goes on, the larger the impacts are gonna be," Greg Dunnett, head of the Hamilton Chamber of Commerce told News Network. The community is supporting affected businesses for now, he said, but if the trade war drags on, it becomes more likely companies will go into "survival mode."
In Hamilton, Dunnett said, there's a strong advanced manufacturing sector built around Stelco and ArcelorMittal Dofasco. When steel prices go up, he said, demand goes down.
"We're gonna see that impact, then it'll go all the way down into our community," he said.
John Farrell, who retired from ArcelorMittal Dofasco after 40 years with the company, told News Network that while it's not as prominent as it used to be, the steel industry in Hamilton still provides good jobs.
"A job like that, you can afford to go out for dinner. You can afford to do things that cost money," he said, noting that if steelworkers find themselves with less to spend, that'll affect a variety of businesses such as local restaurants.
Industry leader says Canada shut out of U.S. market
Some steel businesses have told CBC News they'll be able to adjust to the tariffs but others have been less confident.
Catherine Cobden, CEO of the Canadian Steel Producers Association, told CBC News with the current tariff in place, "we basically consider the U.S. market closed."
"We can't ship at 50 per cent. Perhaps we can stockpile for a few days, but obviously we can't keep producing if one of our major markets is shuttered," she said.
Marty Warren, United Steelworkers National Director for Canada, echoed that sentiment in a statement Saturday, saying: "This isn't trade policy – it's a direct attack on Canadian industries and workers. Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk. Canada needs to respond immediately and decisively to defend workers."
Industry and unions call for retaliation
Cobden said her industry wants the federal government to match the U.S. steel tariffs, and impose tariffs that will prevent foreign steelmakers from selling at low prices in Canada.
Private sector union Unifor called for retaliatory tariffs Wednesday and so did Keanin Loomis, the Hamilton-based president and CEO of the Canadian Institute of Steel Construction.
As of Wednesday afternoon, the federal government had not announced such measures, with Industry Minister Mélanie Joly indicating the government wasn't about to match tariffs on U.S. goods and is still in negotiations with that country.
The federal government has yet to announce such measures.
Danko said the federal government will "take all steps necessary to protect Canadian workers with a co-ordinated strategic response." At the same time, it will look to grow the steel market and reduce reliance on American exports by removing inter-provincial trade barriers and investing in new infrastructure and defence projects that use Canadian steel and aluminum, he added.
In a Hamilton cafe, Steve Lortye told CBC News Network some good might come of all this.
Lortye, who's semi-retired and worked for a company that did business with ArcelorMittal Dofasco, said the trade war has caused Canadians to think more seriously about diversifying our economy and finding new trading partners, something he thinks will be good for the country overall and Hamilton's steel sector in particular.
"I think that Canada's going to hold its own," he said. "It's gonna take some time. We'll have some pain. But hey, we can thank the orange man for making us stronger."
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With files from Meagan Fitzpatrick, Alexandra Mae Jones, Jenna Benchetrit, Rhianna Schmunk