Mar 2, 2018 @ 12:26
President Trump publicly advised on Thursday that he intends to levy a 25 per cent tariff on all steel entering the United States.
Canada and the United States have integrated economic relationships and a balanced trade relationship in steel. In 2016, over 10 million tonnes of steel with a market value of $8.8 billion (USD) was traded between the two countries.
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 per cent of the Canadian market, whereas Canadian steel exports into the US represent only 6 per cent of the US market.
President Trump’s intention to levy a 25 per cent tariff on US steel is detrimental to both the US and Canadian steel markets and the integrated economy shared between the two countries. The tariff represents a significant challenge for Algoma which is an important steel supplier in the US supply chain.
The City of Sault Ste. Marie is seriously concerned about the potential tariff and the effect it would have on Algoma. As a result, on behalf of the City and City Council, Mayor Christian Provenzano has:
- reached out to Algoma CEO Kalyan Ghosh regarding the potential effects of the suggested tariff on Algoma, its plans to lobby against the tariff and to offer the City’s assistance, support and cooperation in doing so;
- reached out to the Office of the Premier of Ontario to communicate the City’s concerns and position and to call on the Province of Ontario to act in defence of Ontario’s steel industry and to offer the City’s assistance, support and cooperation in doing so;
- reached out to Terry Sheehan, MP for Sault Ste. Marie, to communicate the City’s concerns and position and to call on the Government of Canada to act in defence of Canada’s steel industry and to offer the City’s assistance, support and cooperation in doing so;
- reached out to the Canadian Steel Producers Association to express support for its efforts and to offer the City’s assistance, support and cooperation in furthering those efforts.
“Applying a tariff on Canadian steel entering the US market is a bad idea. It is bad for both the Canadian economy and the US economy. It is bad for the Canadian steel market. It is bad for the balanced and complimentary trade relationship in steel that Canada and the US share,” said Mayor Provenzano.
“The City will work with and support Algoma, our Provincial Government, our Federal Government and the Canadian Steel Producers Association to oppose the tariffs and to ensure a more productive and mutually beneficial position prevails.”