The head of a steel empire that started in Harrow, Ont. thinks he can withstand American tariffs in the short-term. But if they’re prolonged, Atlas Tube CEO Barry Zekelman says he may have to shift production across the border.
The Canadian-born billionaire believes the 25 per cent tariff that took effect today is not really about Canadian steel. Zekelman thinks U.S. President Donald Trump is trying to create some chaos.
“What this really is is a shot across Canada’s bow,” said Zekelman. “‘Let’s get this NAFTA deal done.’ I mean this is a change, and I think it’s a change that you’re gonna see in many other negotiations to speed things up and make things happen. Canada should probably take the same approach.”
Zekelman is urging the prime minister to put his ego aside and agree to the ‘sunset clause’ on NAFTA that Trump is asking for.
Zekelman Industries CEO, Barry Zekelman, is supporting U.S. President Donald Trump proposed steel tariffs and says Canada should follow his lead. (Meg Roberts/CBC)
“We’re coming down to the sunset provision? Really? That’s what this is all about? It’s unbelievable that we can’t come to an agreement just based on that sunset clause. I think this has now become a battle of egos. That is very unfortunate. You got a lot of lives, a lot of income, a lot of families at stake here, and park your ego, OK? Get this deal done.”
Zekelman said Canada was quick to retaliate against the United States, with some tariffs of their own announced immediately, but it has not done anything about cheap steel being “dumped” by Asian countries.
“We’re probably going to have to eat some of this. Short term, I can handle it. Long term, we’re gonna have to move some product around. We’re gonna have to move production to the U.S. and balance things out a little bit better, but that’s a terrible situation. This is our most efficient plant. We’ve got tremendous workers here, but it is going to cause disruption, if in fact this is prolonged.”
Stelco worker David Poole uses a grinder to strip excess zinc from part of the huge “Z-Line” that galvanizes huge rolls of steel, most of which is used for building automobiles. Photographer: Norm Betts/Bloomberg News (Norm Betts/Bloomberg News)
Zekelman has 15 manufacturing locations on both sides of the border, with the bulk in the U.S., and one in Harrow.