Canada’s Biggest Steelmaker Sees Layoffs From U.S. Tariffs – by Greg Quinn (Bloomberg News – June 26, 2018)

https://www.bloomberg.com/

The head of Canada’s biggest steelmaker says he may have to lay off 1,000 workers and review $750 million (US$564 million) of investment if the government doesn’t fight back against U.S. tariffs.

Canada shouldn’t waver in its plan to retaliate against the 25 per cent tariff the U.S. has imposed on steel imports, ArcelorMittal Dofasco Chief Executive Officer Sean Donnelly told lawmakers Tuesday in Ottawa. The government should also seek the permanent elimination of the U.S. tariff, he said.

“This combined impact could result in reduced production, potential shutdown of operating lines impacting over 1,000 direct jobs and over 4,000 indirect jobs in Ontario, in Quebec, with significant implications” to future investment, he said.

The Hamilton, Ontario-based unit of Luxembourg-based ArcelorMittal has a payroll of more than 8,000 in Canada and ships 6 million metric tons of steel a year, he said.

Canada is set to impose retaliatory tariffs on $16.6 billion of U.S. products. The start date comes after a one-month delay during which Prime Minister Justin Trudeau waited to see if the U.S. would back down on its tariffs. The U.S. levies of 10 pe rcent on aluminum and 25 per cent on steel, based on national security grounds, also apply to Mexico and the European Union.

For the rest of this article: https://www.bloomberg.com/news/articles/2018-06-26/canada-s-biggest-steelmaker-sees-layoffs-from-u-s-tariffs

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