'This is a big concern': Saskatchewan politicians speak out about U.S. steel import tariffs

AU.S. announcement imposing hefty tariffs for imports of steel could have major implications for Saskatchewan, say local politicians.

"To the extent we have a major producer of steel here with Evraz steel, this is a big concern," Regina Mayor Michael Fougere said.

U.S. President Donald Trump has announced hefty new tariffs for imports of steel, at 25 per cent, and 10 per cent for aluminum that are to be implemented next week in his attempt to boost U.S. manufacturers.

• Trump says U.S. will impose tariffs of 25% for steel, 10% for aluminum

Details on whether all countries, including Canada, will face the steep tariffs on steel and aluminum have not yet been released.

But Fougere said the lack of details creates uncertainty for Canadian businesses and industry. The United States and Canada are in the midst of re-negotiating on its trade agreements, but the U.S. raising separate challenges on what Fougere called "sidebar sectors" detracts from the wider discussion to renew and update NAFTA, he said.

"These kind of discussions - with a major sector of our economy that's really affecting Saskatchewan - is not helpful."

'It throws the whole market in disarray'

EVRAZ North America said it has no comment to make at this time.

• Evraz invests $200M in Regina facility, creates 40 new jobs

However, Evraz has stated in the past that its operations in Canada employ over 2,000 people, and spur six to 10 times as many indirect jobs through the supply chain, mostly in Western Canada.

Prince Albert MP Randy Hoback, the chair of Saskatchewan's Conservative caucus, noted that not only would a tariff hurt steel exporters, but it could also hurt Saskatchewan manufacturers, like producers of farm machinery and farm products.

"We import a lot of steel and bring steel in from different parts of the world and when you throw a tariff in like they're doing in the U.S., we don't know what that does to supply and demand, and the supply chains," he said.

He speculated the move could make Canadian products made with more expensive U.S. steel less competitively-priced on the global market.

"It throws the whole market in disarray, so we're very, very concerned. We're there with our steel producers so they know they have our support."

Steel stats

Canada is the No. 1 seller of both steel and aluminum to the U.S. It is also one of the top importers of U.S. steel for its auto and defence sectors.

The United States imported 26.9 million tonnes of steel in 2017, and more than four million, or 16 per cent of it, came from Canada.

Hoback noted Canada will be watching closely to hear the specifics on tariffs, and how it may impact the country.

"Indirectly and directly, the devil will be in the details."