Alberta metal companies fear Trump's tariffs might mean making hard decisions

Alberta's billion-dollar steel and aluminum industries are bracing for a big hit on Wednesday as U.S. President Donald Trump is promising to impose a 25 per cent tariff on Canadian metal products entering the United States.

It's a prospect that has local manufacturers as worried as ever following a day that once again saw the White House threaten even bigger tariffs before backtracking.    

Early Tuesday, Trump said he would double — to 50 per cent — his planned tariffs on Canadian steel and aluminum starting Wednesday in response to Ontario's new surcharge on exports of electricity to some U.S. states.

But after speaking with U.S. Commerce Secretary Howard Lutnick, Trump's tariff czar, Ontario Premier Doug Ford agreed to pause the tax until he has trade discussions with the administration in Washington on Thursday. That prompted the White House to reduce its metal tariff threat back to 25 per cent.

Among Albertans working in the metals industry, the uncertainty is wearing thin. 

Glen Brooks, president of Allied Metal Ltd. — a 55-year-old Canadian manufacturing company in northeast Calgary that caters to all industries — has been losing sleep over on-again, off-again tariffs.

"We have no idea where it's going to go," said Brooks, early Tuesday afternoon. 

"The biggest thing for us is just the market instability this is causing. We're already starting to see effects of that — projects are getting put on hold, and you can just see the amount of quoting and activity in the industry, it's just starting to drop already."

Trump announced in early February he would impose 25 per cent tariffs on all aluminum and steel imports to the U.S., including those from Canada, on March 12.

On Tuesday, the White House said Trump will go ahead with a 25 per cent tariff on Canadian steel and aluminum just after midnight, capping off yet another chaotic day of trade threats.

Allied Metal made roughly $8 million in revenue last year, and according to Brooks, about 30 per cent of that was thanks to business south of the border. 

Brooks said that when tariffs were first talked about, the company actually saw a quick spike in business.

"We actually saw people stocking up on parts to get them in under the tariffs," he said. 

Now, with the tariff threat inching closer to becoming a reality — and the talks of it being doubled to 50 per cent — Brooks isn't sure how it will play out for Allied Metal and its 45 employees.