US Tariffs Hit Canada’s Steel & Aluminum Industry, Job Cuts Begin
The steel and aluminum industry in Canada is reeling from the impact of US tariffs, with at least 200 workers already affected by job cuts. The United States imposed tariffs on steel and aluminum imports from Canada in May 2018, citing national security concerns. However, the move has had far-reaching consequences for the Canadian industry, which is heavily reliant on exports to the US.
According to Marty Warren, National Director of the United Steelworkers, the tariffs have led to significant job losses in the industry. “At least 200 workers have been affected by job cuts, and the number is expected to rise as the tariffs continue to bite,” Warren said in an interview.
One of the companies that has been hardest hit by the tariffs is the Canada Metal Processing Group, which has cut 140 jobs due to the “threat of incoming tariffs.” The company, which produces steel products for the automotive and construction industries, had been operating at reduced capacity due to the tariffs.
The job cuts have been devastating for the affected workers and their families. Many have been left without a steady income, and are struggling to make ends meet. The tariffs have also had a ripple effect on the broader economy, as the steel and aluminum industries are major employers in many Canadian communities.
The situation is likely to worsen in the coming months, as the US is set to impose additional tariffs on Canadian steel and aluminum on April 2. The tariffs, which are being implemented under Section 232 of the US Trade Expansion Act, are designed to protect the US steel and aluminum industries from what the Trump administration claims are “unfair” trade practices by Canada and other countries.
However, economists warn that the tariffs are likely to have unintended consequences for the US economy, including higher prices for consumers and lost jobs in industries that rely on steel and aluminum imports. “The tariffs are a double-edged sword,” said economist Ian Lee of Carleton University. “While they may protect US steel and aluminum producers in the short term, they will ultimately harm the US economy and lead to job losses in other industries.”
The tensions between the US and Canada over the tariffs are likely to continue to escalate in the coming months. The Canadian government has been unable to persuade the US to lift the tariffs, and has instead been exploring other options, including filing a complaint with the World Trade Organization (WTO).
The WTO has the power to impose sanctions on countries that violate international trade agreements. However, the process can be long and arduous, and it is unclear whether the WTO will ultimately take action against the US.
In the meantime, the Canadian steel and aluminum industry is bracing itself for further job losses and economic uncertainty. The tariffs have already had a devastating impact on the industry, and it is unclear when things will return to normal.
As the situation continues to unfold, it is important for Canadians to stay informed and to support the steel and aluminum industry. The industry is a vital part of the Canadian economy, and it is essential that we do everything we can to protect it.
News Source:
https://news.abplive.com/business/canada-s-steel-and-aluminium-industry-hit-by-us-tariffs-job-cuts-begin-1760685/amp
