The City of Hamilton is looking at ways to support the steel industry, as the United States threatens a 25 per cent tariff on Canada’s steel.
U.S. President Donald Trump announced a 25 per cent tariff on steel imports Sunday, starting March 12. These tariffs would be on top of the broader 25 per cent tariff, which Trump delayed for 30 days last week.
Canada provides the largest amount of steel imports, according to the United States government. Almost a quarter of all steel imports to the United States come from Canada.
At Wednesday’s city council meeting, Mayor Andrea Horwath said the tariffs pose a significant threat to Hamilton, its workers and local businesses. She said she has been connecting with steel companies, government officials, workers and groups representing workers about the impact these tariffs could have on Hamilton.
“It is very clear there is a worry out there,” Horwath told council, adding the city has to be "flexible" with the amount of uncertainty surrounding the tariffs.
Horwath said the tariffs have the potential to reduce the city’s GDP by up to $1.1 billion per year and impact up to 48,000 jobs in Hamilton and surrounding regions.
Steel tariffs will significantly impact manufacturers like Stelco, Dofasco, and companies in the auto and construction industries, which Horwath said have a critical role in the economic stability of the city.
Horwath said tariffs could cause a $3.6-billion reduction in export value.
Hamilton Centre NDP MP Matthew Green said in a statement, "Thousands of good-paying union jobs in Hamilton depend on steel exports to the United States. Any disruption to that supply chain is an immediate threat not just to steelworkers but to the entire economy of this city."
In response, Hamilton is putting out a call to all levels of government to source steel locally, from Hamilton. Horwath said the city is looking at other ways to weather the potential tariffs.
Her motion suggests the city itself will purchase steel from its own manufacturers for upcoming capital works projects, and from manufacturers in other Canadian cities like Sault Ste. Marie, when needed.
The goal is to re-orient tendering and purchasing to buy more steel locally, said the mayor.
The city is also asking the federal government to open a Canadian Border Service Agency customs office at Hamilton’s port, to facilitate moving steel through the country and abroad. Horwath said this has been an ask from the industry for a while.
"It will help getting goods to market," Horwath said.
Council also wants to expedite the city’s Metrolinx Light Rail Transit project to stimulate the city’s economy, and to source all steel material for the project through Hamilton’s steel manufacturers, and eliminate the two-week employment insurance waiting period for all employees impacted by the U.S. tariffs.
"It's nutsy-cuckoo down there," Ward 15 Coun. Ted McMeekin said, referring to a slew of recent decisions made by the Trump administration.
He said council should also call for work on provincial trade barriers.
Ward 9 Coun. Brad Clark said, "Municipalities have very few cards we can play, other than what the mayor is proposing."
The motion carried unanimously.
