Hamilton looks to source local steel for city projects in face of 'troubling' business slowdown, mayor says
Ontario city's council urges other governments to do the same amid U.S. tariff threats
Mayor Andrea Horwath says steel is the "beating heart" of Hamilton, and that's why, in the face of U.S. tariffs, she's urging all levels of government to start prioritizing its use in public infrastructure projects.
City council unanimously voted in favour of her motion Wednesday directing city staff to undertake eight initiatives to "strengthen local procurement and resilience amid U.S. tariff threats."
The actions range from the city changing its procurement process to prioritize bids using steel made in Hamilton to calling on upper levels of government to do the same for their public infrastructure projects.
Horwath told council she's spent the last couple of "busy days" talking to steel producers, fabricators and workers, as well as government officials, which informed her motion.
"And its very clear there's a worry out there," Horwath said. "We don't know what's happening. We don't know what might come next."
The U.S. is threatening two actions that would greatly impact Canada, and its steel and aluminum industries in particular.
The first is a worldwide tariff of 25 per cent on those two products starting March 12. The second is an economy-wide tariff of 25 per cent on all goods imported from Canada and Mexico while it works on border-security deals with both countries.
The White House said Tuesday that should all its trade actions take effect in March, it would indeed pile tariff on top of tariff, to reach 50 per cent on some items.
'Orders have dried up'
Hamilton is home to two of the largest primary steel producers in Canada — ArcelorMittal Dofasco and Stelco — as well as a plethora of fabricators, which are already facing business slowdowns in the face of uncertainty.
On CBC's The National on Tuesday, Horwath said she's heard "orders have dried up" and layoffs have already begun as American customers are reluctant to do business this side of the border in the face of uncertainty.
"It's troubling. The signs are very troubling," Horwath said. "Our city has diversified its economy significantly. But steel is still ... the beating heart of our city."
Horwath's council motion directed city staff to look for ways to support Hamilton steelmakers by:
- Prioritizing using local steel in municipal projects through tendering and purchasing processes.
- Exploring doing the same for Canadian aluminum.
- Urging federal and provincial governments to develop supply chains so its easier for municipalities across Canada to use Hamilton steel in their capital projects.
- Calling on upper levels of government to use Hamilton steel in public infrastructure.
- Calling on the federal government to eliminate the two-week waiting period for employment insurance for workers impacted by tariffs.
- Calling on upper levels of government to expedite construction of the Hamilton LRT as a "stimulus initiative" and ensure Hamilton steel is used throughout.
Coun. Maureen Wilson (Ward 1) praised Horwath's motion at council on Wednesday.
"There is not going to be a return to what was," Wilson said. "This is going to be a long-term orientation of geopolitics and trade, and government is going to have to play a key leading role in upholding business — that means using local where possible in all our capital works."
Demanding customs office at Hamilton port
Another aspect of Horwath's motion will be to demand the federal government "immediately" establish a Canada Border Services Agency (CBSA) customs office at Hamilton's major port to make it easier to move products, including steel, to markets across Canada and abroad.
It's a request the Hamilton-Oshawa Port Authority (HOPA) made two years ago and are "eager to move forward" on, said Larissa Fenn, vice-president of corporate affairs.
The CBSA office would allow international train cars to be cleared closer to their final destination, encouraging more cost-effective and sustainable rail transportation, Fenn said.
"This essential step would streamline trade, reduce supply chain bottlenecks, and enhance Hamilton's position as a key hub for industry and commerce," she said.
"Time is of the essence in ensuring Canada has a reliable and resilient supply chain, and this is something we can do right now."
It remains unclear what products will be impacted by U.S. tariffs should they proceed and by how much, said Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction.
"We don't know if the White House knows exactly what they're targeting," said Loomis, who spoke to CBC's David Common on Metro Morning on Wednesday.
The tariffs could apply to raw steel as well as on downstream steel products like pipes.
Governments can help ease the impacts by continuing to build infrastructure, whether it be in transportation, energy or buildings, said Loomis.
ABOUT THE AUTHOR
With files from CBC News