The Canadian metals industry faces significant challenges as higher US tariffs on steel and aluminium, now at 50%, threaten to result in job losses and lost sales, according to a Reuters report.
Canada is the largest seller of steel and aluminum to the US.
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Unifor, Canada’s private sector union, and the Aluminium Association of Canada have expressed serious concerns over the immediate impact of the tariffs.
Unifor president Lana Payne was quoted by the news agency as saying: “So this is going to have a very quick impact, I will say to you, on steel industry.”
According to the report, members of the Aluminium Association of Canada, including Rio Tinto, are reportedly considering diversifying to Europe in response to the 50% tariffs.
Nova Scotia-based Marid Industries CEO Tim Houtsma highlighted the impossibility of selling to the US market under these conditions, indicating a need for cost-watching and market exclusion fears.
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By GlobalDataPrime Minister Mark Carney has announced that Canada is ready to retaliate if negotiations with the US fail.
“We are in intensive negotiations with the Americans, and, in parallel, preparing reprisals if those negotiations do not succeed,” he declared to the House of Commons.
Unifor has urged immediate retaliation and suggested halting exports of critical minerals to the US. The union also warned of potential layoffs in the auto and aerospace industries.
Canada imposed 25% tariffs on $21.79bn (C$29.78bn) worth of US imports in March.
Meanwhile, the Mining Association of British Columbia’s 2025 economic impact study highlights 27 advanced-stage mining projects in British Columbia that could inject more than $90bn into the economy, potentially creating thousands of jobs and generating significant tax revenues.
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