P.E.I. steel fabricator concerned about potential impact of U.S. steel tariffs
CBC News | Posted: March 6, 2018 1:00 AM | Last Updated: March 6, 2018
CFO of MacDougall Steel Erectors says it's too soon to know how the tariffs could affect the business
Executives at MacDougall Steel Erectors in Borden-Carelton say it's too early to tell what U.S. President Donald Trump's tariffs could mean for their business, and they're waiting for more details.
Last week, Trump announced a 25 per cent tariff on any steel imported into the U.S. — including from Canada.
"We never really thought maybe it would quite come this far," said MacDougall Steele Erectors CFO Kirk MacKinnon.
U.S. a key market
MacDougall has been increasing its exports to the U.S. after the downturn in the Canadian oil industry.
"The idea was going forward that that would be one of our key markets," MacKinnon said.
We're still wondering … exactly what the tariff will apply to. - Kirk MacKinnon
MacKinnon says he and his co-managers didn't think Trump's "made in America" policies would go this far, and they were worried when they first hear him announce plans for steel and aluminum tariffs. But MacKinnon said they're trying not to have a "sky is falling" outlook.
"It is significant, but at the end of the day, we just don't know enough details," MacKinnon said.
Much of the steel used in fabrication at the MacDougall plant originates in the U.S. And MacKinnon said he wonders how that will impact the application of tariffs to their products.
"We're still wondering … is it based on raw material, or fabricated goods, or just exactly what the tariff will apply to," he said.
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