In another potential blow to Canadian industry, U.S. President Donald Trump is threatening to double tariffs on U.S. steel imports to 50% from 25% currently.
The United Steelworkers union (USW) criticized Trump’s plan to double steel tariffs, saying it is a “direct attack on Canadian industries and workers.”
“Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk,” said the United Steelworkers in a written statement. “Canada needs to respond immediately and decisively to defend workers.”
Canada is the largest steel exporter to the U.S. with a major production centre located in Hamilton, Ontario. The industry is already reeling from Trump’s 25% import duty on steel.
Trump announced late on May 30 that he plans to double tariffs on steel imports to 50% from 25%, increasing the pressure on manufacturers.
Canada isn’t the only U.S. trade partner that could be impacted by the increased duty.
The European Union was also quick to respond and said, “We strongly regret the announced increase of U.S. tariffs on steel imports.”
The European Union added in a news release that it is “prepared to impose countermeasures, including in response to the latest U.S. tariff increase.”
Trump says the new 50% import duties on steel products are set to go into effect on June 4 this year, though many people are hoping a deal can be reached to limit the tariff.
The U.S. president made the announcement at a rally at U.S. Steel (X) in Pennsylvania, where he promoted a deal he approved that allows Nippon Steel of Japan to buy U.S. Steel.
The stock of U.S. Steel has gained 65% this year on news that the company is being acquired and is currently trading at $53.82 U.S. per share.
