Even before the United States announced the imposition of tariffs at midnight, March 4, Algoma Steel was already reducing its workforce, at least in the short-term.
The president of the union representing salaried professionals at Algoma Steel in Sault Ste. Marie says around twenty of his members were laid off, effective Friday, Feb. 28, primarily due to uncertainty about the imposition of 25 % American tariffs on steel, with the possibility of more to come.
Bill Slater is president of USW local 2724, which includes engineers, accountants and information technologists.
He said the lay-offs may be temporary, or there could be more, he’s not sure.
“At this time, right now, I have no idea,” said Slater. “I mean anything is possible for more layoffs. It’s possible for the people that are laid off to get recalled. I don’t have control. And with the uncertainty right now, it’s very hard to look into the future.”
Slater says Algoma Steel produces primarily plate and coil, and that a lot of the coil is sold to the United States for automotive and appliance construction.
He says he’s waiting to hear what the levels of government are doing to mitigate the impacts.
“I hope there’s a lot more of a Buy Canadian call from the government that’s going to ensure at least our projects that are going on, that are based off of tax dollars, are using Canadian products,” said Slater.
“And I hope that they look outside of the USA for trade agreements, so that all our eggs aren’t in one basket.”
He said while the union is holding the company to its collective agreement, it is trying to assist Algoma Steel in any way it can to allow it to be more successful.
Meantime, the mayor of Sault Ste. Marie, Mathew Shoemaker, said worries about the impact on his border city are being confirmed.
“We are hunkering down for an extended period of challenging economic times here,” he told CBC Radio. “It’s going to be tough. There’s no masking that.”
Shoemaker, as a mayor, doesn’t have a direct role in trade, but he said that the city can reach out to counterparts that either buy steel or supply raw materials to make steel to Algoma, and keep lines of communication open, as it did when the United States imposed tariffs in 2018.
“We are trying to coordinate conversations, and I continue to be in close contact with the mayor of Sault, Michigan and American legislators to try to advocate against these tariffs, whether individually, or as part of the Border Mayors Alliance that we’ve joined.”
Shoemaker does admit that he is worried that the tariffs might be in effect for an extended period of time.
“I’m eager to see what the federal government plans with regard to its countermeasures and its support measures to buttress the communities and industries that are most impacted by this,” said Shoemaker.
Canada, Ontario announce preliminary retaliation
In measures announced this morning by Prime Minister Justin Trudeau, Canada is imposing 25 % retaliatory tariffs on $30 billion worth of American products, with the levy set to expand to cover another $125 billion in U.S. goods in 21 days.
Trudeau added that Canada will file claims with the World Trade Organization and through the Canada-U.S.-Mexico Free Trade Agreement.
Ontario Premier Doug Ford said he would prioritize Ontario products in the $30 billion worth of procurement the government does each year, and would rip up a $100-million deal with Elon Musk’s SpaceX for Starlink services.
Ford said he wants every retail store in the province to show which products are made in Canada and if it doesn’t happen, he has threatened to legislate the practice.
He also said Tuesday afternoon that he is slapping an immediate 25 per cent surcharge on all electricity that Ontario sends to the states of New York, Michigan and Minnesota.
