Trudeau says ending tariff exemptions for Canadian steel would hurt U.S. economy

Justin Trudeau is telling steel workers in Sault Ste. Marie, Ont., that it makes no sense for the U.S. to reverse its decision to exempt Canada from trade tariffs on steel and aluminum.

The prime minister says restricting Canadian steel imports would hurt the American economy.

U.S. President Donald Trump recently exempted Canada and Mexico from tariffs of 25 per cent on steel and 10 per cent on aluminum, although the U.S. government has been dropping hints that the exception is only temporary.

The northern Ontario steel community of Sault Ste. Marie is the latest stop on Trudeau's tour of metal towns and cities, which included Alma, Que., and Hamilton earlier this week, and will cap off with Regina later today.

Trudeau shook hands and greeted workers during a shift change early this morning at the Algoma steel plant in Sault Ste. Marie, while rolls of coiled steel radiated heat behind him.

Trudeau says Canada will not flinch in its support for workers and he hopes the threat of U.S. tariffs can be solved in a friendly way.

Steelworkers 'a little uneasy'

Randy Detorre said the mood among employees is "a little uneasy," and after 38 years at the plant, is hoping Trudeau offers steelworkers more than handshakes.

"It takes action and communication, tact, diplomacy dealing with our American friends," Detorre said.

"Let's just hope everything comes out in the wash, because we're pretty good trade partners, and it would be sad to see it deteriorate."

Detorre said Trump's threat of tariffs is the latest in what's been, economically, a tumultuous time at the plant. The company filed for creditor protection in 2015.

"We've been kicked so many times in the last little while…and it's the last thing we need here is to be kicked again while we're down," he said.

"But we've persevered in the past, and we'll get through this. I hope, anyway."

Wayne Wooley, who has worked at Algoma for 36 years, said the plant is Sault Ste. Marie's "prime driver" and it was encouraging that the Prime Minister took an interest in the community.

"We're all a team, here, steelworkers," Wooley said. "And we can appreciate what's going on on both sides of the border."

"Hopefully [Michigan State Senator] Wayne Schmidt, and our political people, provincial and federal, can pull together and make this happen."

Tariffs shouldn't apply to Canada, Trudeau says

During his earlier visits to factories in Saguenay, Que., and Hamilton, Trudeau said the national security argument the U.S. has made when it comes to considering tariffs makes no sense and could not apply to Canada.

Speaking in Hamilton on Tuesday, Trudeau said there are measures in place, including tariffs and tougher border controls, to prevent steel and aluminum producers in other countries from using Canada as a back door to slip cheap metal into the United States.

Trudeau said the surplus of steel in the global market is not new and with American tariffs in place, some countries might try to ship their products to the U.S. through Canada.

He said Canada would be alert to that and work with industry partners and the United States to make sure that doesn't happen.

A steel tariff would be devastating for Sault Ste. Marie, the heart of steel country in northern Ontario, where Algoma makes up more than 40 per cent of the city's economic output.