U.S. President Donald Trump recently announced 25 per cent tariffs on all steel and aluminum imports to the United States. This decision will have a big impact on Canada, especially our steel industry.
In 2018, similar tariffs caused Canadian steel exports to the U.S. to drop by almost 40 per cent in just one month. The new tariffs could be as bad or worse, with our economy on shaky economic ground.
Experts say that Canadian steel will likely be hit harder than aluminum. Aluminum might handle the tariffs better due to its steady demand and Canada's hydroelectric power, which makes production more cost-effective. However, steel producers will face more severe challenges. With Canadian imports becoming more expensive in the U.S., Canada could lose its market share to U.S. producers. This may result in Canadian producers laying off workers or cutting prices, which could make them unprofitable.
Ontario and Quebec are expected to be disproportionately affected by the tariffs. Ontario is home to six of Canada’s 13 steel plants, with Hamilton housing major steelmakers like Stelco Inc. and ArcelorMittal Dofasco Inc. Quebec, which exports about 60 per cent of its aluminum to the U.S., will also feel the impact. The situation in these regions highlights the significant economic consequences of the tariffs.
To take control of the conversation, companies can partner with SHIFT to craft powerful campaigns that expose the real impact of tariffs, rally public support, and influence government action. We create the tools to navigate any crisis head-on. In an unpredictable trade environment, having a proactive strategy isn’t a nice-to-have.
SHIFT’s deep expertise in crisis communications and digital mobilization ensures that companies don’t just react—they lead. By leveraging cutting edge tactics and tools exclusively available to SHIFT, we laser focus your messaging to actually make a difference. It’s not just the job of elected leaders to spotlight the vital role of Canadian steel and aluminum in both domestic and U.S. markets. Collectively, it’s all of ours and we’re ready to help drive policy shifts, shape public perception, and keep Canadian industry competitive.
Canadian politicians are hard at work lobbying our southern neighbours against the new tariffs, but companies shouldn’t see that as licence to do nothing. On the contrary, governments get frustrated when they work on these files and don’t see a similar effort coming from industry. Canadian producers may not have control over the imposition of tariffs, but they can certainly develop strategic plans to mitigate their impact.
Canadian companies should also consider looking for markets in other countries, particularly those that have a strong manufacturing base but lack abundant energy resources. Although transportation costs are a challenge, exploring new markets could help offset the impact of any potential tariffs.
The proposed steel and aluminum tariffs aren’t scheduled to come into effect until March 12 and it remains to be seen whether the U.S. will implement them or use them as leverage to bargain on other issues of importance like border security. That said, Companies must be ready to launch strategic communications campaigns that can exist in concert with larger government efforts.
There’s no time like the present to show our resolve as a nation is strong as steel.
Matt Solberg is the Managing Partner at SHIFT