Steel coils are seen cooling off at Algoma Steel Inc. in Sault Ste. Marie, Ontario, on Friday, April 25, 2025. (Photo credit: Sean Kilpatrick/The Canadian Press)
Canada’s steel and aluminum industries are under intense pressure after the United States sharply increased tariffs, doubling them to 50%. Industry leaders, unions, and business groups are calling on the federal government to respond swiftly and decisively to avoid a crisis that could cost thousands of Canadian jobs.
Catherine Cobden, president of the Canadian Steel Producers Association, warned that the country’s steel sector is at serious risk. “If nothing is done, we will be a severely weakened industry in a very short time,” she said.
The sudden tariff hike sent shockwaves through the industry. Steel exports that were already en route to the U.S. are now facing huge financial losses. Cobden called the situation “completely chaotic” and said it has left companies scrambling for solutions.
The impact is twofold: Canadian steel heading to the U.S. is now too expensive to compete, and products blocked from entering the U.S. from other countries are expected to flood the Canadian market instead. That would only make the situation worse for domestic producers, who are already grappling with unfair pricing from foreign players, especially China.
The steel industry wants Ottawa to expand an existing 25% tariff on Chinese-made steel to cover products made from Chinese steel in other countries, too. Cobden also urged the government to bring back strong retaliatory tariffs against the U.S. to match their new rates.
Without action, she warned, the industry may not survive in its current form. “We’ll shrink. We’ll be weaker. But at least we won’t completely collapse,” she said.
The call for government intervention is gaining support from all sides. Prime Minister Mark Carney acknowledged the urgency of the issue, saying discussions with the U.S. are underway and that a Canadian response is coming “very soon.”
Ontario Premier Doug Ford echoed the demand for retaliatory tariffs. Meanwhile, the Canadian Chamber of Commerce urged a careful, targeted response that pressures the U.S. without worsening conditions in Canada.
The aluminum industry is also in turmoil. Although aluminum is higher in value and easier to reroute to other countries, the Aluminum Association of Canada warned that the tariffs are still damaging. Jean Simard, the association’s president, said the move threatens jobs, disrupts supply chains, and could harm key sectors like construction, defence, and automotive.
The Canadian Labour Congress noted that layoffs have already started, even before the full impact of the tariffs is felt. President Bea Bruske said more job cuts are expected in the coming days and weeks. She stressed that the uncertainty alone is causing severe damage.
Cobden estimated that about 700 jobs have already been lost since the U.S. introduced the initial 25% tariff in March. Canadian steel exports to the U.S. — which account for half the country’s production — fell by 30% in April.
Companies like Algoma Steel are now publicly pleading for government help. Labour union Unifor called the U.S. tariffs a “direct threat to Canadian jobs and security.” National president Lana Payne said investment is vanishing, jobs are disappearing, and the federal government must act now.
Industry leaders will meet with federal politicians on Thursday to press for immediate support. While they praised recent commitments from Ottawa to use Canadian steel in public projects, Cobden warned that these promises might be too late. “We may not be around to supply those projects if things keep going like this.”
