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.
