Canada warns of job losses after U.S. doubles tariffs on steel and aluminum

Canadian manufacturers and union leaders are warning of job losses and sales disruptions after the U.S. raised tariffs on Canadian steel and aluminum to 50%, prompting Ottawa to prepare retaliatory measures.

Canada’s steel and aluminum sectors are sounding the alarm after the United States doubled tariffs on the two key metals, sparking fears of layoffs, lost sales, and market shutdowns. The hike — from 25% to 50% — took effect early Wednesday and has already prompted backlash from Canadian manufacturers, unions, and government officials.

The U.S. move targets Canada, its largest supplier of steel and aluminum, which exports twice as much aluminum to the U.S. as the rest of the top 10 exporters combined.

Lana Payne, president of Unifor, Canada’s largest private sector union, warned of immediate consequences:

“This is going to have a very quick impact on the steel industry,” she said.

The Aluminium Association of Canada, whose members include Rio Tinto, warned that higher tariffs could drive producers to shift exports to Europe instead. Tim Houtsma, CEO of Madrid Industries in Nova Scotia, said the tariffs would effectively block Canadian mid-sized firms from selling into the U.S. market.

“We are going to tighten our belt... We’re going to be shut out of the U.S. market for some period of time,” he told Reuters.

Canadian Prime Minister Mark Carney told Parliament that Ottawa is preparing retaliatory measures:

“We are in intensive negotiations with the Americans and, in parallel, preparing reprisals if those negotiations do not succeed,” he said.

Unifor is urging the government to retaliate immediately and consider halting exports of critical minerals to the U.S. The union also warned that the auto and aerospace sectors could face cascading layoffs if the trade conflict deepens.

Canada previously responded to U.S. tariffs in March by imposing 25% duties on C$29.8 billion ($21.79 billion) worth of American imports. While Carney has cautioned that there is a limit to tit-for-tat measures, pressure is mounting for a swift and robust response.

On the U.S. side, steel traders are also feeling the squeeze. Jeremy Flack, CEO of Flack Global Metals, said orders have slowed considerably since the initial tariff hikes earlier this year:

“We are not getting any orders. Volumes starting from February have begun to decline.”

As both sides dig in, trade experts warn that continued escalation could threaten broader sectors of the North American manufacturing economy.

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