Sault Ste. Marie in Ontario and Michigan share a border — and now a very big tariff threat
A shared border and shared anxiety over 25% tariff threat
Canadians and Americans sit next to each other in the stands of a small Sault Ste. Marie, Ont., hockey arena to watch the Soo Thunderbirds face off against their cross-border rivals, Michigan's Soo Eagles.
The fierce clash on the ice has most people's attention, but anxiety lingers about something else: Donald Trump's threatened 25 per cent tariff on all Canadian goods.
The U.S. president-elect made the threat in a post on his platform Truth Social last week. All goods from Canada and Mexico would be tariffed, he said, until they cracked down on drugs and migrants illegally entering the U.S.
It's unclear whether Trump will actually enact the tariff, or is promising to do so as a negotiation tactic. However, for Sault Ste. Marie in Ontario and in Michigan, two cities located a short drive from one another, the proposed tax threatens the close relationship they've enjoyed for generations.
"The thought of it is scary," said lifelong Ontario Sault resident Meta Motiejunas. "I'm sure it would … possibly close down our companies that are keeping this city together."
Concerns for steelworkers
Sault Ste. Marie, Ont., is a steel town. Smoke stacks from Algoma Steel tower along the banks of the St. Marys River which separates the two countries. Nestled nearby in the same industrial area is Tenaris, a pipe manufacturer, behind tall fences.
Between them, the two companies employ 3,600 people, according to the city's economic development office, not including the hundreds of contractors who also work there and in related industries. In all, an estimated 9,400 — or 23 per cent of its total workforce — is employed in some way by steel.
The industry also employs Americans who cross the bridge every day to work
To Canadian retired steelworker Morris Bajor, Trump's threats ring hollow.
"I think he's just trying to raise a big ruckus. I doubt very much if he'll do it," he said, though he acknowledged it would be very bad for Canada.
But Kevin Bosbous, leaning up close against the plexiglass to cheer on the Eagles, says it will also be bad for Sault Ste. Marie, Mich.
"The Canadian folks come over and help this Sault Michigan economy. So I don't think there should be a tariff at all," said the American retiree, whose parents were in the grocery business and relied on cross-border shoppers.
"It would affect us considerably because people wouldn't be going over to do their shop and buying their gas."
'We are a one-horse town'
Donald Trump's 25 per cent tariff on Canadian steel in 2017 lasted for about 11 months. There were dozens of layoffs throughout the sector in Sault Ste. Marie, Ont. That has the United Steelworkers union watching this situation very closely.
"A lot of people just think that Trump likes to bark and likes to be the big bully ... and other people are more concerned that he does follow through with it," said Bill Slater, USW president for Local 2724, which represents Algoma employees.
"I think it's scary because in our community, we are a one-horse town."
Slater says 20 per cent of U.S. steel imports are from Canada, so soaring tariffs would damage both countries. But despite a strong trade relationship, he recognizes Canada is more like the "little brother" in the equation.
"For our [union] membership that's working, there is definitely going to be cuts in jobs."
He worries job cuts and soaring prices could hit the Sault very hard.
"The scary part is when Donald Trump is making remarks about tariffs, it doesn't mean anything to him what's going to happen to the community of Sault Ste. Marie," he said.
One of the hardest things that Sault businesses are dealing with right now is uncertainty, according to Jason Naccarato, president of Sault Ste. Marie, Ont.'s Chamber of Commerce.
Naccarato agrees that Canada should get tougher on drugs — one of Trump's reasons for the threat — but he fears a tariff could impact Algoma's and Tenaris's ability to bid on contracts.
"They structured themselves under the concept [that] they'd be operating under the USMCA and they'd be competitive through that agreement," he said, referring to the free trade agreement that replaced the 1994 NAFTA.
"If you're betting against, you know, U.S. firms for U.S. projects, their competitiveness would be significantly hurt," he said.
"That could lead to layoffs, that could lead to production cuts. So something like that for our city would be devastating."
Fears of a tariff war affecting small businesses
Across the bridge on the Michigan side, over a hot crepe griddle, restaurant manager Elise Beaudoin-Johnson is also anxious about what might happen.
"It's a matter of whether or not the Canadian population continues to come over and support local businesses on the side of the bridge," she said. "We have no idea what it's going to look like."
Beaudoin-Johnson is worried a tit-for-tat tariff war could also impact the supply chain for her restaurant.
She hopes the two Saults will get through the tense tariff talks together.
"It's really going to boil down to supporting each other."
A city across two nations
Mayor Matthew Shoemaker's office looks across the St. Marys River to Michigan.
The cities are situated on a traditional Anishinaabe gathering place.
"Before the border existed, it was a free flow of people and goods across the St. Marys River," Shoemaker said.
"It's been a mutually beneficial relationship for Sault Ste. Marie, Ontario, and Sault Ste. Marie, Michigan, which is really one city across two nations."
Shoemaker said lots of Ontarians cross the border for cheaper milk and gas, while many other Michiganders come across to save 20 to 25 per cent on their purchases because of the stronger U.S. dollar.
It's not just shopping — the American kids learn to swim in the pool on the Canadian side, while the Canadian kids play sports in the U.S. or go to college there, he said. Families and friendships span the river between the two communities, going back generations.
Shoemaker is banking on those close ties to get them through the tariff threats.
He regularly meets his counterpart in Michigan, Mayor Don Gerrie, for a drink to catch up and strengthen their relationship.
"We've got a holiday gathering coming up with our council and their council," Shoemaker said.
"We want to make sure that those ties are close, so that if we need to have them advocate against the tariffs, if they are imposed, then we think we have an ally there."
Change in tone
Back at the hockey game, as Michigan's visiting Eagles score yet again on Ontario's Thunderbirds, some fear a change in tone between the two Saults.
Lynne Hergott, another longtime Sault Ste. Marie resident, said she wasn't surprised when the president-elect made his tariff threat.
"That's what Trump does. Like, that's what he did last time. Attack your neighbours and cause friction and that kind of thing," she said.
Though she says it's not as upsetting this time as Trump's first term, she fears his rhetoric could spill over and once again change the tone of her American neighbours.
"Sadly, the people in Sault Michigan take on that persona," she said.
"So there's that, too. They're not as friendly as they used to be. During these times of discontent, I think things are not what they used to be, that's for sure."
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