Hamilton steel industry at risk as Trump announces tariff increase

The Hamilton steel industry is at the centre of a potentially-devastating new stage of the U.S trade war.

Ontario Premier Doug Ford says U.S. President Donald Trump has broken a promise and is calling for immediate retaliation as Trump’s latest steel tariff comes into effect.

At the White House Tuesday, the press secretary said Trump is going ahead with his new tariff on Canadian steel to protect the American steel industry.

“He’s saving those jobs and he’s saving that community, and that’s the intention of the steel tariffs which he will sign later this afternoon,” said Karoline Leavitt, White House press secretary.

Trump made that promise to Pittsburgh steelworkers that he would double the U.S. tariff on Canadian steel.

“We are going to be imposing a 25 per cent increase. We’re going to bring it from 25 per cent to 50 per cent, the tariffs, on steel coming into the United States of America,” said Trump.

The Canadian industry says this could bring steelmakers to a standstill.

“We can’t expect the steel industry to survive a 50 per cent tariff for any length of time,” said Catherine Cobden from the Steel Producers Association.

And Premier Doug Ford says it’s time to fight back.

“My recommendation is slap them with a 25 per cent because we can’t be kicked around any longer,” said Ford.

WATCH MORE: Trump escalates trade pressure, raising steel and aluminum tariffs

In an earlier round of this tariff war, Ford imposed an electricity surcharge on the United States in March when Trump brought in a 50 per cent steel tariff – but then dropped the surcharge when Trump and his Commerce Secretary Howard Lutnick cut the tariff to 25 per cent.

Ford says he thought he had a deal.

“I’m very, very disappointed. I’m a man of my word. When we agreed, when I went down there with Secretary Lutnick, they pull off the 25 per cent additional tariffs, we take off the surcharge that we put on electricity. And that promise was broken,” Ford said.

Prime Minister Mark Carney wasn’t promising retaliation Tuesday, referring to counter tariffs Canada has already brought in.

“The government of Canada is imposing tariffs that cause maximum impact on the United States, minimum impact on Canada, fact, on over $60 billion of U.S. exports to Canada, fact,” said Carney.

And Hamilton Liberal MP John-Paul Danko says there may be more to come.

“Every option is on the table. So that may be retaliatory tariffs on steel, but it may be other supply chain management tariffs, other disruptions to the economy. Being very strategic about how we respond,” said Danko.

Danko also says trade negotiations may be making progress – the same idea expressed by Premier Ford after meeting with the U.S. ambassador Tuesday. But that’s for overall trade negotiations, not for steel tariffs so far.

Ford said Tuesday, despite all of this, he remains confident the overall trade negotiations with the U.S. will end well.

He said they’re getting very close to a positive deal, but it’s not clear how steel tariffs play into that.

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