Steel industry leaders say failed Canada-U.S. trade talks ‘disappointing but not surprising’

“Disappointing but not surprising” — that’s how steel industry leaders are reacting to Ottawa and Washington failing to reach a trade deal by today’s deadline. 

Many were hoping an agreement would bring some reprieve to the industry being squeezed by 50 per cent tariffs.

The increase on tariffs introduced today will not impact tariffs already in place on steel, aluminum and auto parts, but industry leaders had been crossing their fingers that a trade deal would include their sectors.

The 50 per cent levies — introduced in June — have already pushed steel makers to lay off workers, including 150 job losses at Arcelor Mittal in Hamilton. 

“I really do feel for the steel producers, the Stelcos and Dofascos in Hamilton in particular,” Keanin Loomis, President & CEO of the Canadian Institute of Steel Construction said.

“Obviously 50 per cent is not good for anyone in the steel industry. It’s been difficult dealing with projects in the States. Nobody knows what the price of steel is going to be, or what the outlook is. With it being so uncertain, there’s no big investments being made at this point in time either.”

In a statement released today, the United Steel Workers Union wrote “no deal is better than a bad deal,” and that “this fight is far from over.”

The union also calls on the federal government to extend emergency employment insurance and work-sharing measures beyond their current October 11th expiry and implement domestic measures such as ‘buy Canada rules.’

In the long-term, they want to see a strategy to reduce reliance on the U.S.

While negotiations are up in the air, the American Treasury Secretary did say yesterday that he would speak with Ottawa about the aluminum tariffs, as the levies are impacting Ford Motors.

READ MORE: Trump signs executive order pushing tariffs on Canada to 35 per cent