‘Scary’ time for the Sault’s economy if trade war continues

With steel as a major export, officials in the Sault are deeply concerned about new tariffs imposed by U.S. President Donald Trump.

Sweeping tariffs from the United States are now in place for both Canada and Mexico.

As a trade war starts with Canada’s neighbour, officials in Sault Ste. Marie said Tuesday ‘it’s scary’ to think about what could be on the horizon for the local economy and people.

Sault tariffs Officials from Algoma Steel, the city’s largest employer, have stated in the past that tariffs could lead to shutdowns and other manufacturers in the Sault are already planning on layoffs. (Photo from video)

The Sault dealt with steel tariffs before in the first Donald Trump presidency, but with 25 per cent tariffs this time around, the city could be at a significantly higher risk.

Steel and aluminum tariffs are set to come on March 12.

The 2018 tariffs by Trump lasted 11 months and Sault officials remain hopeful this round doesn’t reach nearly as long.

“It’d be a disaster,” said Mayor Matthew Shoemaker.

“It would be a complete disaster. There is no hiding the fact that this will cause a lot of pain if both tariffs are implemented, even just with either one of the sets of tariffs.”

Officials from Algoma Steel, the city’s largest employer, have stated in the past that tariffs could lead to shutdowns and other manufacturers in the Sault are already planning on layoffs.

Local union leaders said they want the government to support their workers in whichever way is most impactful, but staying busy is a priority.

Sault tariffs2 Officials from Algoma Steel, the city’s largest employer, have stated in the past that tariffs could lead to shutdowns and other manufacturers in the Sault are already planning on layoffs. (Photo from video)

“Bumping up unemployment insurance, that’s a Band-Aid fix,” said Bill Slater of USW Local 2724.

“We need fixes as far as buy-Canadian. When governments are using our dollars for infrastructure projects, they need to use our products.”

Trump has expressed a willingness to increase his own tariffs on Canadian goods. Shoemaker said the aggressive stances from both sides of the border should hit both sides hard but could lead to a quicker resolution.

“The impact needs to be felt, I think, by American consumers when their F-150s cost more and when their lettuce and tomato cost more,” he said.

“Before they start screaming at their own government to get these tariffs removed.”

Shoemaker says the municipality will be looking to avoid spending money on American products and services and implores the rest of the community to do the same -- to help end the trade war and support the Canadian economy.