Up 100,000 could be let go when full-blown tariffs come in, warns union head
A number of companies have started laying off workers as US President Donald Trump imposed tariffs on Canadian steel and aluminum products, and many more are expected to lose jobs, according to a report.
On Monday, Canada Metal Processing Group (MPG Canada) and its subsidiaries—Ivaco Rolling Mills, Sivaco, and Infasco—announced that they are laying off 140 production and office employees in Ontario and Quebec.
“This was an extremely difficult decision for our company, and not one that was made lightly, but necessary for the business in the current environment,” says MPG Canada President Matt Walker. “Our employees are the backbone of our operations. They work hard, day in and day out, to create steel products which are recognized for their quality and good customer service while being an integral part of the Canada-U.S. supply chain.”
The workforce reduction is a combination of permanent layoffs, temporary layoffs, work share and retirements, a spokesperson says, according to Reuters. The company is also freezing hiring for new and vacant roles.
The employer made the announcement after Trump imposed tariffs on steel and aluminum on March 12, according to Reuters.
Overall, 200 United Steelworkers members are already out of a job, says National Director Marty Warren, according to the report.
Algoma Steel layoffs
Earlier, steel producer Algoma Steel announced it has laid off 20 workers amid the US tariffs. The company has now laid off 27 people, according to Reurters. The employer could let go more people, according to the report.
"Everyone losing a job or laid off is a major hit," Warren says.
He said he expects that there will be "a tidal wave" next week, when a 30-day reprieve is expected to end for goods compliant with the trilateral U.S.-Mexico-Canada free-trade agreement.
"With the full-blown tariffs coming in on April 2 … it'll probably affect 100,000 of our members."
One in two (50 per cent) employers expect their headcount to decrease in Canada over the next year amid the US tariffs, according to a previous report from KPMG.
MPG Canada calls for ‘matching retaliatory tariff measures’
Amid the tariffs, MPG Canada says it is calling for the the government to implement the following measures—which, the employer claims, the Canadian Steel Producer Association (CSPA) is also hoping for:
- Prepare to implement matching retaliatory tariff measures without any consultation delay.
- Provide support for workers and businesses during this economic crisis.
- Prevent the ever-increasing unfairly traded imports from other countries into Canada and protect the domestic industry by instituting broad Section 53 surtaxes, without any possible exemptions.
- Promote buying Canadian steel, with its much lower carbon intensity than imports.
- Work in collaboration with the U.S. to create an aligned North American steel trade market for melted and poured North American steel
“First, Canada must enact tariffs on all steel and steel derivatives from China and other known trade offenders to address unfair steel trade in Canada once and for all. As witnessed by Canadian trade cases, there remains significant levels of dumping and other unfair practices which erode our industry’s ability to compete,” says Catherine Cobden, president and CEO, CSPA.
“In addition, we are asking all municipal, provincial and federal governments to step up and ensure they are prioritizing Canadian steel in all their publicly funded infrastructure projects. This would be a strong and timely show of support for Canada’s steel industry, and the workers and communities that depend on it. We are long overdue for ensuring that Canadian-made steel is being prioritized for domestic projects."
Nearly all Canadian employers are in full support of the federal government’s decision to impose tariffs on the US as US President Donald Trump pushes through with his threat of imposing such penalties on Canada, according to another KPMG study.
Canadian small businesses are facing unprecedented pessimism as tensions escalate in the U.S.–Canada trade dispute, according to a previous report from the Canadian Federation of Independent Business (CFIB).
