President Trump’s administration announced on Thursday his intention to levy a 25% tariff on Canadian steel entering the United States, effective June 1.
The facts and statistics establish that Canada and the US have a balanced, fair and complementary trade relationship in steel. In 2017, $12 billion (USD) of steel was traded between the two countries, with each country exporting $6 billion of steel to the other country. Canada is the top destination for US steel exports and the US is the top destination for Canadian steel exports. US steel exports into Canada represent 30% of the Canadian market, whereas Canadian steel exports into the US represent only 6% of the US market.
Additionally, a 2003 study of the most recent previously imposed steel tariffs found that $4 billion in lost wages and 200,000 jobs losses occurred in the US, with the cause attributed to steel prices.
The City of Sault Ste. Marie is seriously concerned about the effect the tariff will have on Algoma and Mayor Provenzano has communicated these concerns to Sault Ste. Marie MP Terry Sheehan.
“I am committed to continuing my advocacy in defence of Algoma and our community at large,” said Mayor Provenzano. “The tariff on Canadian steel is terrible economic policy and it will have a detrimental impact on both Canada and the US. It is important for this rational, fact-based message to be recognized, and for the Government of Canada to defend the steel industry and our country’s economy.”