U.S. reimposes tariffs on Canadian steel, aluminum, sparking economic concerns in the Sault

New 25 percent U.S. tariffs on steel will impact the economy in both Canada and the states–especially in places like Sault Ste. Marie which rely on the industry

The longstanding tariff dispute between the United States and Canada has reignited, with U.S. President Donald Trump signing an executive order to impose a 25-percent tariff on Canadian steel and aluminum. The move has raised concerns about its economic impact on both countries, particularly in communities like Sault Ste. Marie, Ont., where the steel industry is a cornerstone of the local economy.

The tariffs come as a blow to Algoma Steel, Sault Ste. Marie’s largest employer, which is currently in the midst of transitioning to new steel production methods. Speaking with CTV News, Mayor Matthew Shoemaker expressed frustration over the timing, noting the challenges the company already faces.

“This comes at a particularly difficult time when they’re trying to get the new operations online but are still working with the old operations,” Shoemaker said.

“This is going to impact them and take extra dollars out of their ability to get there as quickly as possible.”

The mayor added that local officials had initially believed the tariffs would be paused for 30 days, only to learn they would be reinstated.

“We thought last week the tariffs were paused for 30 days, only to learn yesterday that we are into a situation where they’re going to be on aluminum tariffs, which will impact our economy significantly, as they did in the past,” he said.

The Canadian Steel Producers Association (CSPA) has condemned the tariffs as “baseless” and called for retaliatory measures. Catherine Cobden, president and CEO of CSPA, said the U.S. and Canadian steel industries are too interconnected for these measures to be effective.

“We have $20 billion of trade between our two countries. We are the U.S.’s largest importer of steel, as they are ours,” Cobden said.

“40 per cent of what we import into this country for steel use is from the United States. So that’s where I say it was devastating. But it was difficult on both sides of the border, not just on Canada.”

The tariffs have also reignited political tensions, with some Canadian officials criticizing Trump’s rhetoric. Nipissing-Timiskaming MP Anthony Rota likened Trump’s approach to that of global authoritarian leaders.

“Seeing him now, he’s talking about annexing. He’s taking this right from Putin’s playbook or Xi’s playbook,” Rota said.

“We don’t need another global dictator in the world. By creating that destabilization and trying to destroy an economy, he’s trying to then come in as a savior. That’s not going to work.”

Despite the uncertainty, many in Sault Ste. Marie remain hopeful that the tariffs will be short-lived. Mayor Shoemaker and Sault Ste. Marie MP Terry Sheehan have been in regular discussions with Algoma Steel officials to assess the potential impacts on the company and the community.

As the situation unfolds, stakeholders on both sides of the border are urging diplomacy to resolve the dispute and mitigate its economic fallout.