The U.S. decision to impose tariffs on Canadian steel and aluminum is “absurd” and “insulting,” says Alberta Economic Development and Trade Minister Deron Bilous.
“We’re hoping the U.S. has some sober second thought,” Bilous said Thursday. “As Canadians, we are polite and will try to negotiate, but we’re not afraid to get our elbows up.”
U.S. Secretary of Commerce Wilbur Ross announced earlier in the day the United States was imposing tariffs of 25 per cent on imported steel and 10 per cent on imported aluminum as of midnight.
Canada responded hours later by announcing dollar-for-dollar tariffs on a list of U.S. goods from the United States — including steel, aluminum, whisky and maple syrup — to take effect July 1.
Bilous told reporters at the Alberta legislature that he supports the federal government’s decision to impose counter tariffs.
Premier Rachel Notley told reporters during a visit to Fort McMurray that Alberta would apply for an exemption for steel. But Notley said she wouldn’t provide more details until she could check with her officials.
“We’re going to push very hard to get that exemption and we’ll be working very closely with the federal government in the work that they do on that as well,” she said.
The tariffs could affect costs of building the Trans Mountain pipeline expansion, though Bilous noted many of the materials were purchased in advance.
Keeping customers will be difficult
Bilous said he spoke to Edmonton-based AltaSteel on Thursday morning, and planned to convene a panel of steel customers in the afternoon. He also plans to send a letter to the White House outlining the effects of the tariffs on Alberta.
The tariffs are having a direct impact on AltaSteel, which employs 350 at its facility in Edmonton. The company makes 300,000 tonnes of steel products a year. About 20 percent is exported to the U.S.
AltaSteel president Jon Hobbs said the tariffs mean the company could lose some of its American customers.
He plans to emphasize the value of the company’s product, the short supply chain and how close Edmonton is to markets in the northern U.S.
John Hobbs, president of AltaSteel, says his company ships 20 per cent of its products to U.S. markets. (CBC)
“But 25 per cent is a hard increase to sell, so we’re under no doubt as to how difficult it’s going to be to hold these customers,” Hobbs said.
He said his company will have to look for other markets to replace a potential loss of customers.
Hobbs said the federal and provincial governments have both been supportive. He singled out Foreign Affairs Minister Chrystia Freeland in particular for her work on the issue.