Canada officials push for removal of steel, Al tariffs

Members of Canada's provincial governments asked the country's federal government to drop retaliatory steel and aluminum tariffs levied against the US in hopes of jump starting negotiations to end the US tariffs.

The request to lift Canada's retaliatory steel and aluminum tariffs on US products of 25pc and 10pc, respectively, was made in a joint letter sent to the federal government by economic ministers from Ontario and Quebec.

Todd Smith, Ontario's minister of economic development, cited a lack of real negotiations by the federal government to end US steel and aluminum tariffs, which have been in place against Canadian products since 1 June 2018. Canada's retaliatory tariffs went into effect on 1 July 2018.

Since Canada's tariffs went into effect, Smith said around C$1bn has been collected, but that the money has not been distributed to steel and aluminum companies by the federal government.

Falling steel prices combined with the tariffs have been costing the Algoma Steel mill in Sault Ste. Marie C$1mn per day, said Ross Romano, a provincial parliamentarian from the city. The facility has a production capacity of 2.8mn st/yr, according to its website, and recently received pledges for C$150mn in loans and investments from the Canadian and Ontario governments.

"At the end of the day...the federal government needs to do something to get rid of the 25pc tariff because it is going to cost us more jobs," Romano said.

Smith also cited job impacts at Tenaris facilities. The company announced in January that it would lay off 95 employees at its pipe mill in Sault Ste. Marie, effective 4 February. Tenaris will also temporarily suspend operations at its welded pipe mill in Prudential, Calgary, for 6-8 weeks.