• Published: Jun 04 2025 11:00 AM
  • Last Updated: Jun 04 2025 11:12 AM

Canadian steel billionaire Barry Zekelman supports Trump's steel tariffs, blaming Canada's lax policies. This intensifies US-Canada trade tensions, threatening Canadian steelmakers like Algoma Steel.


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Canadian Steel Magnate Backs Trump's Tariff Hike

Things are heating up in the North American steel industry. Canadian steel billionaire Barry Zekelman, CEO of Zekelman Industries, has publicly endorsed President Trump's decision to double tariffs on steel and aluminum imports into the US. Honestly, this move is sending shockwaves through the Canadian steel sector, and it's a story that needs to be told.

Zekelman Blames Ottawa, Not Trump

Zekelman isn't just quietly agreeing with Trump; he's actively defending the decision. He argues that Canada's own lax policies on dumped foreign steel have forced Canadian producers like himself to compete aggressively in the US market, essentially exacerbating the problem that Trump is trying to address. He paints a picture of a Canadian government asleep at the wheel, allowing a flood of cheap steel to undercut domestic producers. In his words, “What he’s trying to do is force Canada’s hand… He’s trying to say, ‘Look, guys, you haven’t fucking woken up. So, now I’m going to force you to wake up.’” Strong words, indeed.

This isn't just some small player speaking out; Zekelman Industries is the largest independent steel pipe and tube manufacturer in North America, with annual sales exceeding US$5 billion. Their massive operations in both the US and Canada give his words significant weight.

Canadian Steelmakers Face a Crisis

The impact of these increased tariffs is already being felt. Algoma Steel, Canada's only remaining independent steelmaker, warned that a 50 percent tariff could be catastrophic. The situation is so dire that some Canadian companies could be forced to shut down.

  • Algoma Steel: Facing potential closure due to the tariffs.
  • Stelco: Another major Canadian player, owned by Cleveland-Cliffs Inc. (a US company), also impacted.

Calls for Ottawa to Act

The Canadian Steel Producers Association (CSPA) is echoing Zekelman’s call for action, albeit with a slightly different approach. CSPA President Catherine Cobden is pushing for a faster, more effective system to address dumping, suggesting broad tariffs against countries like South Korea, India, and Turkey rather than dealing with individual companies one by one. She pointed out that while a 25% tariff was imposed on Chinese steel last year, the initial tariff reprieve on some US steel products was a costly mistake.

“They made it in the middle of caretaker mode of the government, no consultation or anything else, and it had dramatic consequences. The market was starting to pivot towards domestic steel, away from the U.S. and we lost that opportunity.”

Zekelman's Controversial Stance

While Zekelman's support for Trump might seem surprising given the damage Trump's trade policies have caused Canada, Zekelman argues he’s done more for Canada than most. He points to his company's significant Canadian operations, employment numbers, taxes paid, and community contributions.

What's Next?

This situation is far from resolved. The increased tariffs are a major blow to Canadian steelmakers, and the pressure is mounting on the Canadian government to respond. Whether Ottawa will heed Zekelman's and the CSPA's calls for stronger action remains to be seen. The future of the North American steel industry hangs in the balance.

Stay tuned for updates as this story unfolds.

FAQ

Barry Zekelman is a Canadian steel billionaire who publicly supported Trump's steel tariffs. His stance significantly escalated US-Canada trade tensions, impacting Canadian steel producers like Algoma Steel.

Zekelman's support fueled a US-Canada trade war, threatening Canadian steel companies with economic sanctions and impacting bilateral trade relations under the USMCA agreement.

Trump's steel tariffs, supported by Zekelman, severely threatened the Canadian steel industry, particularly companies like Algoma Steel, leading to potential job losses and economic downturn.

The USMCA, the successor to NAFTA, is impacted by the trade tensions. The dispute highlights challenges in maintaining a stable and balanced trade relationship between the US and Canada within the agreement's framework.

The trade war risked further economic sanctions on both sides, negatively affecting various sectors beyond steel and potentially impacting the broader North American economy.

Zekelman's support for tariffs is a clear example of protectionist policies. His actions prioritized domestic steel interests, potentially at the expense of free trade and international cooperation.

Algoma Steel is a major Canadian steel producer directly threatened by the trade war sparked by Zekelman's support for Trump’s tariffs. Its future is intertwined with the resolution of the trade dispute.

US-Canada trade relations regarding steel remain tense following Zekelman's actions. The dispute highlights ongoing challenges in resolving protectionist trade policies and their significant economic impacts.

The trade war could reshape the North American steel market. It may lead to reduced trade, higher prices, and potentially a restructuring of the steel industry across the continent.

This dispute demonstrates that despite trade agreements like NAFTA and USMCA, protectionist sentiments and actions can trigger significant trade wars and highlight underlying vulnerabilities in bilateral trade relations.

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