The Canadian metals industry is warning of severe economic fallout after the United States doubled tariffs on steel and aluminium imports from Canada to 50 per cent, sparking fears of widespread job losses and lost sales across the sector.
Canada, the largest supplier of steel and aluminium to the US, now finds its dominant export position under unprecedented threat.
Unifor, Canada’s largest private sector union, and the Aluminium Association of Canada have both raised alarm over the swift and damaging effects of the new tariffs.
“So this is going to have a very quick impact, I will say to you, on steel industry,” Unifor president Lana Payne told Reuters, underscoring the urgency of the situation.
The Aluminium Association of Canada, whose members include global producer Rio Tinto, is reportedly evaluating a major shift in export strategy.
The group is considering redirecting shipments to Europe as the US market becomes economically unviable under the new tariff regime.
Tim Houtsma, CEO of Nova Scotia-based Marid Industries, described the immediate impossibility of competing in the US market: “We are going to be shut out of the US market for some period of time,” he said — adding that the company would need to watch costs closely while fearing exclusion from its largest export destination.
Prime Minister Mark Carney has confirmed that Canada is engaged in “intensive negotiations with the Americans, and, in parallel, preparing reprisals if those negotiations do not succeed,” he declared to the House of Commons.
Canada already imposed 25 per cent tariffs on US$21.79 billion (C$29.78 billion) worth of US imports in March.
Unifor has called for immediate additional retaliation, including the possible suspension of critical minerals exports to the US, and has warned of potential layoffs in the auto and aerospace sectors if the dispute is not resolved.
The new tariffs are part of broader US trade policy adjustments in 2025 that have sent shockwaves through Canadian manufacturing and supply chains.
Industry experts warn that hundreds of jobs have already been lost, with more at risk in the coming months as manufacturers and fabricators face exclusion from their primary export market.
Meanwhile, the Mining Association of British Columbia’s 2025 economic impact study highlights a contrasting opportunity: 27 advanced-stage mining projects in British Columbia could inject over $90 billion into the economy, creating thousands of jobs and generating significant tax revenues.
However, industry leaders caution that these longer-term prospects do little to offset the immediate crisis facing Canada’s steel and aluminium producers.
As Canada’s government weighs its next move, the country’s metals industry braces for a turbulent period marked by market uncertainty, potential layoffs, and shifting global trade alliances.
