Adedokun Waliyu 
While the United States has paused its blanket 25 per cent tariff on some goods, there’s still uncertainty as duties on steel and aluminum imports into Canada are set to kick in March 12.
Chris Pierno, who owns Brother’s Fabrication in Calgary’s southeast, tells CityNews “It feels like some bully antics going on over there.”
His business specializes in food trucks but does other metal work, including fabricating trailers and turning them into kitchens, businesses, and even tiny homes.
While Pierno uses a lot of steel and aluminum that does not come from the States, the same can’t be said for the trailers, which are constructed of either steel or aluminum.
“About 90 per cent of our trailers come from the U.S,” Pierno said.
U.S. President Donald Trump’s executive order Thursday pausing some Canadian imports is linked to maintaining the flow of automobile parts that comply with the Canada-U.S.-Mexico Agreement (CUSMA) and helping farmers.
This means imports from Canada that comply with the trade deal would also avoid the 25 per cent tariffs for a month, while the potash that U.S. farmers import from Canada would be tariffed at 10 per cent.
However, the 25 per cent duties on steel and aluminum are at risk of being stacked on top of the 25 per cent broad-based tariffs on most goods that U.S. President Donald Trump has been looking to level against Canada.
As Canada and the U.S. embroil in a trade war, Pierno is watching to see if Canada’s retaliatory actions against the U.S. could make it more expensive to get those trailers.
“Some of our suppliers are looking at pivoting, using more Canadian manufacturers,” Pierno said.
“I think it’s a beautiful thing, except for things that get more expensive, and things happen less when they are more expensive.”
Catherine Cobden with the Canadian Steel Producers Association says the damage is already being done within that industry.
“We’ve seen job losses already, investment deferrals, production curtailments,” she said.
“50 per cent is devastating.”
The Aluminum Association of Canada (AAC) says job losses aren’t expected within the sector, but adds Americans will pay a heavy price if they continue on this road.
“At the end of the day, the Americans will be paying 25 per cent more, they still need the metal. This is very recessionary. It’s going to impact consumer behaviour, it’s already happening,” said Jean Simard, the president and CEO of the AAC.
Both associations support strong retaliatory measures against the U.S. and support for affected industries from the tariffs.
As for Pierno, the silver-lining is that the trade-war spurred Canadians to work on trading with themselves.
“We have a pretty strong country with a lot of resources, and if we can figure out how we can work together, then I think it can benefit us long term,” he said.
