Sask. industries prepare for pain of U.S. steel, aluminum tariffs
Construction, steel producers could face cost surges from 25 per cent tariff
Industries in Saskatchewan are bracing for the impact of the 25 per cent tariffs on steel and aluminum announced by U.S. President Donald Trump this week.
Shannon Friesen, the CEO of the Saskatchewan Construction Association, said she is keeping a close eye on the United States, with the tariffs scheduled to come into effect on March 12.
The most recent news indicates the 25 per cent worldwide steel and aluminum tariffs could stack on top of the 25 per cent economy-wide tariffs Trump intends for Canada and Mexico on March 4, reaching 50 per cent on some items.
Many companies in the province's construction sector are reliant on supply chains that flow through the United States, said Friesen.
"Can we supply it from elsewhere? I think we can. And certainly that would be a focus, but that would take some time to sort that out. And you know, and in the immediate [future], there's concerns about cost escalations."
Friesen said the construction industry is known to be resilient but a 25 per cent tariff could pose a challenge. She warned that rising costs could result in layoffs or even the cancellations of some projects.
Construction is unlikely to be the only industry preparing for the impact.
Regina is the home of one of 13 steel plants in the country. Evraz, the company operating that plant, has yet to respond to a request for an interview.
In 2018, when similar tariffs were put in place by Trump during his first administration, the federal government contributed $40 million to assist the facility.
An expert told CBC News earlier this week that although most of Canada's steel production is located in Ontario and the effects of the tariffs are likely to be felt the heaviest in that province, the knock-on effects could be severe.
Mark Brown, president of metal fabricator Pro Metal Industries Ltd. in Regina, said U.S. tariffs are unlikely to directly affect his business, and he is trying to find a silver lining to the overall threat to the economy.
"Nothing good can come with tariffs. It's an economic disruption on our supply chain and everything," he said.
"But if I have to look at the positive, it creates us, at Pro Metal, and us, the consumers, to look internally. What do we have in Canada?"
Brown said he tries to make sure he procures steel from inside Canada and encouraged more companies to do the same in order to broaden the domestic market.
Jason Childs, a professor of economics at the University of Regina, said the steel and aluminum tariffs — and the threat of broader tariffs on all goods — should force Canada to reassess its reliance on the United States.
According to data from the U.S. Census Bureau, in 2024 Canada supplied about one-quarter of America's steel and iron imports and almost 60 per cent of its aluminum imports.
Roughly 90 per cent of Canada's steel and aluminum exports go to American companies, according to data from Statista, a global data and business intelligence platform.
Childs outlined a similar approach to Brown's — expand the domestic market — and added another suggestion: look to markets outside North America.
"We've either got to figure out how to restore our trading relationship with the U.S. or we've got to move really fast, as fast as we possibly can, to find other outlets for our natural resources and maybe work a little harder at adding value to them before we sell them on into the world," said Childs.
The economist said Canada has done little in the past decade to build the infrastructure necessary to make that expansion happen quickly and may pay the price now.
Saskatchewan Premier Scott Moe is in Washington, D.C., this week as part of a joint mission by Canadian premiers and the Council of the Federation.
Moe is planning to meet with industry leaders and American officials.
In a statement issued Tuesday, Moe said he will reiterate the message that tariffs "will hurt both the Canadian and American economies, driving up prices and making us less competitive globally."
Moe has stopped short of endorsing retaliatory tariffs, while Official Opposition Leader Carla Beck has called for Ottawa to implement them immediately.
Regina-Qu'Appelle MP Andrew Scheer told CBC today that his heart goes out to the steel industry and the workers here in Saskatchewan.
The Opposition House Leader emphasized that the Conservative Party of Canada believes the impending tariffs are unjustified.
"We absolutely call on retaliatory tariffs and that any funds collected from tariffs on American steel and aluminum be used to support the workers whose jobs are going to be affected," he said.
Childs said he does not believe a retaliatory tariff on steel or aluminum is likely to help Canada.
"If we want to retaliate, if that's necessary for our national pride, fine. But know, it's going to cost a lot. It's going to hurt," said Childs.
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