Trump’s steel, aluminum tariff impacts start to build 1 month in

It's still not clear how much higher the tariffs will push consumer prices and translate into reduced demand, but industry insiders say the risks are building.

The costs and chaos being caused by metal tariffs are starting to build up after a month in effect, and there’s little hope they’ll be removed in the foreseeable future.

U.S. President Donald Trump imposed 25 per cent tariffs on Canadian steel and aluminum on March 12, raising significant concerns for a sector that exported around $35 billion of metal to the U.S. last year.

It’s still not clear how much higher the tariffs will push consumer prices and translate into reduced demand, but industry insiders say the risks are building.

The aluminum tariffs alone add about $3,000 to the cost of an F150 truck, Aluminum Association of Canada CEO Jean Simard said. Add in the steel tariffs, and auto tariffs, and it means about $12,000 more in input costs.

“That’s destructive,” he said.

While Canadian aluminum producers have been able to pass on their higher costs, the tariffs now in place could mean reduced demand in the automotive and construction sectors that are the two biggest customers, Simard said.

“So there’s just that whole domino effect that comes into play, and we’re at the end of this.”

And while somewhat insulated so far, companies are taking a financial hit already.