Canadian steelmaker Algoma Steel is bracing for the impact of the steel and aluminum tariffs about to be imposed by the Trump administration, according to Algoma Steel CEO, Michael Garcia.
Speaking to Canadian television network CTV, Garcia stated that local plate and coil prices in the US have surged by 35 percent and 25-30 percent respectively since January 20, presenting an opportunity in the short term to continue to ship to the US with tariff obligations covered. Garcia commented on the 25 percent tariffs on steel and aluminum the US seeks to impose from March 12, stating, “Assuming the steel price remains where it is now, it would immediately put any business that we’re doing in the US under water. It wouldn’t make sense for us to continue to ship to the US if we believe that a 50 percent tariff was going to be in place for any significant amount of time.”
Algoma has already started laying off employees as a cost-cutting measure and the pink slips in the company may continue depending on how the tariff situation progresses.
As previously reported by SteelOrbis, US President Donald Trump has announced 25 percent tariffs on foreign steel and aluminum imports on Monday, February 10 to be effective as of March 12. The import tariffs for all products imported from Mexico and Canada went into effect officially on March 4.
In the meantime, Canada has filed a complaint with the World Trade Organization (WTO) today, March 6, against the US decision to impose 25 percent tariffs on all non-energy imports and 10 percent tariffs on energy imports from Canada.