Canada’s business advocacy groups are calling for government action following promised American tariffs on Canadian steel and aluminum.
U.S. President Donald Trump has signed an executive order to levy 25 percent tariffs on steel and aluminum imports to his country beginning March 12.
Canadian Chamber of Commerce president and CEO Candace Laing said in a statement the move is “wrong on so many levels.”
“Today’s news makes it clear that perpetual uncertainty is here to stay,” Laing said.
“Businesses and investors already feel on shaky ground with the 30-day tariff pause, and now our steel and aluminum industries—critical to the shared success of both the American and Canadian economies—are first into the fire.”
A similar sentiment was echoed by Toronto Region Board of Trade president and CEO Giles Gherson, who said in a statement immediate action must be taken to “shore up our economy and Canada’s economic sovereignty.”
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Gherson’s statement included a to-do list from the Toronto Region Board of Trade for the Canadian government in response to the tariffs, with one item being to impose counter-tariffs on the U.S. in order to protect Canadian steel and aluminum businesses’ home market.
Another point on the list called for broad and sweeping reform in an effort to launch, as well as accelerate, national energy and critical minerals projects.
“If we’re going to be forced to go it alone without our largest trading partner and trusted ally, we urgently need an efficient national economy that reflects the true scale of a top 10 global economy, rather than the current costly fragmentation,” Gherson said.
The Aluminium Association of Canada says U.S. tariffs will hurt U.S. jobs and U.S. industries, including defence, automotive, construction and housing.
“At a time when you want to keep the price of everyday goods down, and ensure good American manufacturing jobs, a tariff will only drive prices higher–hurting Americans in their pocketbooks and undermining the agenda the U.S. government says it wants to achieve,” association chief executive Jean Simard said in a statement.
Data from the U.S National Trade Administration shows the United States is Canada’s largest market for aluminum, with over three million tonnes exported to the U.S. last year.
BMO economist Robert Kavcic says Canada’s total steel and aluminum exports to the U.S. last year were $35 billion, or roughly one percent of GDP.
“We can drill further and look at where steel and aluminum U.S. export exposure is greatest and, no surprise, that is Quebec and Ontario,” said Kavcic.
