Alberta Metal Companies Face Uncertainty Over U.S. Tariffs

Calgary

Alberta's billion-dollar steel and aluminum industries are preparing for significant challenges as U.S. President Donald Trump is set to impose a 25 percent tariff on Canadian metal products entering the United States.

Impact of New Tariffs

The tariffs will heavily affect not only Eastern Canada but also Alberta's steel and aluminum sectors. Local manufacturers are increasingly anxious as the White House has fluctuated between stronger and softer tariff threats. On Tuesday, Trump hinted at doubling the planned tariffs from 25 to 50 percent due to issues related to Ontario's electricity surcharge on U.S. exports.

Fortunately for Alberta, Ontario Premier Doug Ford negotiated a pause on the surcharge, leading the White House to revert the tariff threat to 25 percent. This unpredictable back-and-forth regarding tariffs is leaving many in the Alberta metals industry on edge.

• Trump has announced a 25% tariff on Canadian steel and aluminum following a chaotic day of trade speculations.

Those employed in the metals industry across Alberta express growing frustration regarding this uncertainty. Glen Brooks, president of Allied Metal Ltd., a 55-year-old manufacturing company based in Calgary, stated that the shifting landscape has caused concern among employees. "We have no idea where it's going to go," said Brooks, reflecting the overall sentiment in the industry.

He noted that the market instability is already affecting business operations. Projects are being postponed, and activity in the industry is declining. Brooks reported his company had earned around $8 million in revenue last year, with approximately 30 percent of that generated from U.S. clients. He described the difficulties of maintaining payroll with the looming threat of tariffs: "It only takes a couple bad months for those reserves to be eaten up. And then you've got to make hard decisions," he explained.

Challenges of Tariff Uncertainty

The unpredictability of the situation creates challenges for manufacturers. Chad Spicer, owner of All Metal Manufacturing in Calgary, emphasizes the difficulties small businesses face with the changing tariff framework. "It's hard to prepare because one day the tariffs are on, the next day they're off. We're having to switch gears repeatedly because we're not sure if we're coming or going," Spicer said.

In January, Alberta exported over $105 million worth of metal and non-metallic mineral products to the United States, demonstrating the strong economic ties between the region and its southern neighbor. With such a significant portion of business directed towards U.S. customers, Alberta manufacturers are facing the stark reality that tariffs could cut deeply into their operations.

Even at a 25 percent tariff rate, Spicer notes the immediate impact on prices, stating, "Even if they do go through, things are going to go up immediately… but wages aren't." There is a growing concern that consumer demand will falter as prices rise, as he remarked, "Nobody wants to pay more for the same thing." Such financial pressure comes at a time when residents are already grappling with increased living costs.

Looking Ahead

The ongoing discussions surrounding tariffs are likely to continue affecting Alberta's metal industries. Manufacturers are hoping for stable leadership and a resolution to the trade war that would alleviate the uncertainty currently plaguing their businesses. For now, they remain on watch, anxious about the future and what decisions lie ahead as the tariffs loom nearer.

Alberta, Tariffs, Manufacturing