The following statement was shared with Superior Media by Mr. David McHattie, Institutional Relations, Canada Tenaris.
‘Tenaris is adjusting its production levels at TenarisAlgomaTubes as a result of the 25 percent tariff imposed by the United States and the effect of increased import competition in Canada from countries no longer able to sell in the U.S. due to the Section 232 action on them. The implementation of a tariff has created an unsustainable market to serve our U.S. customers.
Regrettably, as of July 1, approximately 40 union employees will be temporarily laid off due to changes in the export market. These employees were hired in January to respond to increased operations at that time to meet new demand for our products. The market outlook remains uncertain as we continue to understand the full-scale impacts of cross-border tariffs and due to the increase in imports to Canada from countries that have also lost the U.S. market as a result of the Section 232 action against them.
The following clip features Minister Bains speaking about a safeguard investigation to combat steel diverted to Canada from countries no longer able to sell in the US market.
In response to a questions from a reporter at the press conference held earlier today in Hamilton, Ontario, Minister Bains stressed that their goal was to take action “sooner rather than later” on safe guards and to work with industry on determining the specific products to deal with the surge that we are starting to see.’
During today’s televised news conference announcing Canada’s trade retaliatory measures directed squarely at the United States, a reporter from the Financial Post asked Minister Bains an important question about a safeguard investigation to combat steel diverted to Canada from countries no longer able to sell in the US market.
The transcript for that exchange is posted below.
Reporter: I‘d like to ask about the safeguards. when are they slated to take effect? what products are involved? and are they going to be taken under the critical circumstance provision of the W.T.O. (world trade organization)?
Minister Bains stated: With respects to the safeguards, we’ve been very clear that any position we take will be consistent with our international trading obligations. with regards to the specific measures coming into place, we’ll be consulting with industry. this was their number one ask. we’ve been very clear that we’ll work with them to determine the specific products that we’re going to examine and put safeguards around. we’ve already introduced 72 trade remedies in the past around steel and aluminum. with 23 different countries. and we’ve seen the positive impact that’s had. clearly our concern is around diversion. and that is why, aside from the $2 billion support package that we highlighted today, we’re concerned about dumping and concerned about diversion and we’ll work very closely with the sectors, both aluminum and steel, to look at the specific products that we need to put safeguards around. this is a commitment that we have made and will continue to work with and to implement it in a timely manner.
Reporter: Will you be referring a case to the C.I.T.T. (Canadian International Trade Tribunal) or taking action ahead of that?
Minister Bains: Right now our objection is to take action soon rather than later and determine the specific products and make sure that we deal with the surge that we’re starting to see a bit and also the potential surge that we anticipate.
reporter: and these will be immediate measures.
Minister Bains: We will work with industry to determine the specific products and then to take action soon thereafter.