US Tariffs Already Hitting Canada's Steel Industry

Today's Industry Insight on:

U.S. steel and aluminum tariffs have caused over 200 layoffs at Canadian steel producers, including 140 positions at Canada Metal Processing and 20 at Algoma Steel. The United Steelworkers union reports all workers face uncertainty about future employment and expects a potential impact on over 100,000 members with continued tariffs.

Measures from the Canadian government have included a pre-emptive 30-day safeguards consultation in April, to strengthen the deterrence of potential diverted dumping. The government also previously announced a C$6 billion business aid package and expanded the EI Work-Sharing Program to avoid full layoffs.

Source:

https://www.canada.ca/en/department-finance/news/2025/03/government-launches-consultations-on-trade-measures-to-prevent-diversion-of-steel-products-into-canada.html

https://www.reuters.com/world/americas/canada-steel-aluminum-plants-lay-off-workers-due-us-tariffs-2025-03-26/

What we have to say:

"These articles revealed to me how exposed traditional manufacturing remains to US tariffs. Layoffs are a clear sign of rising margin pressures, and order delays. 

The evolving market will likely reward players who lock down verifiable supply chains and use geographic diversification to hedge against regional trade wars. For steel suppliers, sectors such as pharma and food processing can provide some cover against tariff volatility, where compliance and consistent quality often matter more than a lower price."

Insight by

Vivek S.

(Business Development Executive)