NANTICOKE—The recent steel tariffs imposed by US President Donald Trump have left Canadian steelworkers and industry leaders grappling with uncertainty, raising concerns about potential job losses, declining orders, and the broader economic impact on both sides of the border.
The 25% tariff on steel imports took effect on March 12, 2025. While Canadian steel has weathered US tariffs in the past, the latest move expands beyond raw materials to include finished steel products, affecting major players such as National Steel Car.
The Hamilton-based manufacturer, Canada’s largest producer of train cars, has already seen orders dry up since Trump’s election, adding to broader industry anxieties.
John McElroy, President of United Steel Workers Local 8782, which represents around 1,300 workers at Stelco Lake Erie Works, Stelco Pickling Division, Harsco, and ESM Metallurgical Products in Nanticoke, described the mood among workers as one of apprehension.
“It’s just a level of uncertainty,” he said. “We’re not really sure, as things change, our order book goes up and down.”
While 70% of the steel produced by Local 8782 members is sold within Canada, McElroy noted that their reliance on US customers still makes them vulnerable to the shifting trade landscape. The union is awaiting further clarity on the future plans, with a key business meeting scheduled for March 25.
Professor Christos Shiamptanis, an associate economics professor at Wilfrid Laurier University, highlighted the fundamental economic impact of tariffs.
“A tariff is a custom duty on import goods,” he explained. “If he does impose tariffs, it means the Americans will now have to pay a higher price … to buy any non-American products.”
Shiamptanis pointed out that the tariffs will not only increase the cost of steel products in the US, but also trigger Canadian retaliatory tariffs, resulting in higher prices for consumers in both countries. He warned that the uncertainty surrounding tariffs could depress investment and spending, further straining the economy.
In response to the US tariffs, the Canadian government has announced a $6 billion aid package aimed at assisting affected businesses and workers. Additionally, employment insurance rules have been adjusted to increase accessibility for those in need.
Labour Minister Steven MacKinnon assured workers that the federal government is committed to supporting them.
“We have tried and tested tools to get our people through the toughest of crises and we will not hesitate to use them,” said MacKinnon.
However, union leaders remain skeptical about whether government measures will be enough.
The National Director of the United Steel Workers of Canada (USWOC) condemned the tariffs as a “direct attack on workers and communities.” The organization emphasized that $20 billion worth of steel is traded between Canada and the US annually and warned that the disruption caused by tariffs will destabilize industries on both sides of the border.
Despite the uncertainty, McElroy remains confident in the resilience of Canadian steelworkers.
“I’m confident in our workforce,” he said. “We have a great group of members, and when things get tough, we always seem to band together and stick together in times of need.”
This is not the first time Canadian steelworkers have faced tariffs from a Trump administration. In 2018, Trump imposed a similar 25% tariff on Canadian steel and aluminum, which remained in place for a year. However, McElroy recalled that his local union’s operations were actually busier than ever during that period.
“Back in 2018, when that happened, we’ve never been busier. Steel prices were good, and we were shipping like crazy, so it actually didn’t really affect us back then,” he said.
The key difference this time is the expanded scope of the tariffs, which now includes finished steel products. This change has exacerbated uncertainty, as Canadian companies wait to see how customers and suppliers respond.
“We’re just waiting to see what it is,” McElroy said. “We don’t think anyone’s in panic mode by any means, but we’re taking a cautionary step.”
For Canadian steelworkers, the stakes are high. While some companies may find ways to adapt, others face an uphill battle.
The long-term impact of these tariffs remains unknown, leaving workers, businesses, and industry leaders watching closely as trade tensions between Canada and the US continue to unfold.
