U.S., Canadian Trade Organizations React to Trump Tariffs
The North American construction industry is on high alert following a slate of tariff announcements from President Donald J. Trump and the associations that represent various aspects of the construction are reacting.
On Feb. 1, Trump announced 25 percent tariffs on imported goods from Canada (except energy goods) and Mexico and an additional 10 percent tariff on goods from China.
A fact sheet for the action notes that previous administrations failed to fully leverage America’s economic position as a tool to secure our borders against illegal migration and combat the scourge of fentanyl, preferring to let problems fester.
These tariffs prompted a swift reply from the Canadian Construction Association (CCA), the national voice for Canada’s institutional, commercial, industrial, civil and multi-residential construction industry. Rodrigue Gilbert, president of the CCA released the following statement:
Canada’s construction industry is disappointed to see the imposition of tariffs. We appreciate that the federal government has issued a strong response to President Trump’s senseless tariffs and will hold consultations with industry on further measures.
The impacts of this trade conflict will be felt throughout the Canadian economy. These measures are likely to impact not only the ability of construction operators to meet their project requirements, but also the supply chains that the Canadian industries rely on all together. This limits the industry’s ability to combat the housing crisis, it slows down its ability to build critical infrastructure, and so much more.
This is a time where we need all Canadians to stand up for Canada. This is not the time to sit on our hands – we all have to work together to increase productivity and support Canadian businesses, so that we can all build a stronger Canada and surmount this trade conflict.
Read the complete statement here.
Likewise, Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction offered commentary on the initially proposed tariffs.
The Canadian Institute of Steel Construction is disappointed with today’s announcement that the United States has invoked the International Emergency Economic Powers Act (IEEPA) to implement a 25 per cent additional tariff on imports from Canada and Mexico, with a 10 per cent tariff on Canadian energy resources.
Canada and the United States share one of the closest trading relationship in the world, to the benefit of both our countries. Specifically, our steel industries are closely intertwined with fabricators and manufacturers relying on trade between our two countries to deliver vital products and services. These tariffs, and potential retaliatory tariffs on these products, will hurt both economies and disrupt our integrated supply chains.
The CISC anticipated this development, and we will continue to keep our members informed of the latest measures and available supports as they unfold while continuing to be a vocal advocate for fair trade policies that protect and support the steel industry and the greater Canadian economy. To maximize these efforts, we will continue to work alongside like-minded stakeholders and the Canadian Government.
Financial supports for workers and businesses in the sectors most heavily affected by the tariffs on cross border trade, including steel fabrication and construction, should be introduced. The CISC will participate in any government consultations regarding retaliatory measures to protect the interests of the Canadian steel sector.
Following counter tariffs from Canada and Mexico, and after meeting with leaders from both countries, these tariffs were put on a 30-day pause.
However, the goodwill was short lived when, on Feb. 11, Trump announced that he is reinstating the full 25 percent tariff on steel imports and increasing tariffs on aluminum imports from 10 percent to 25 percent.
These tariffs were actually enacted by Trump in 2018 as part of his authority under Section 232 of the Trade Expansion Act of 1962 to adjust imports of steel and aluminum to protect the United States’ national security. At the time the countries of Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, Ukraine, and the United Kingdom, as well as the European Union, had received exemptions, which prevented the tariffs from being effective.
These tariffs prompted a strong rebuke from the Canadian Steel Producers Association. Catherine Cobden, president and CEO of the Canadian Steel Producers Association released the following statement:
We are deeply concerned that US President Donald Trump is again threatening more tariffs on Canada, this time directly targeting the steel and aluminum sectors. While the details remain unclear, we will analyze the President’s order once it is released and have more to say at that time.
When President Trump implemented tariffs on Canadian steel in 2018, we saw massive disruptions and harm on both sides of the border, hurting both America and Canada.
Read the complete statement here.
On the U.S. side, Doug Carlson, CEO of the National Utility Contractors Association (NUCA) released the following statement:
America’s underground utility construction industry is literally building America’s foundations for renewed economic growth and success across every industry. Much of our federally-funded work through recent infrastructure laws is already subject to domestic iron and steel sourcing requirements. But the macroeconomic effects of these new tariffs will drive up construction materials prices and make it challenging to meet the increased demand for domestically made components on all public and privately funded projects. Our nation’s construction industry derives about 25 percent of its steel from non-domestic sources, and the specialized iron and steel products used in underground utility projects are essential to its efficient completion. And roughly half of America’s aluminum comes from foreign sources – it will take significant time for domestic supply to catch up to demand.
NUCA urges the Trump Administration to reconsider the pending tariffs on steel and aluminum, at least with regards to materials used in domestic infrastructure projects.
Read Carlson’s complete statement here.
The Association of Equipment Manufacturers (AEM), while supporting some of Trump’s proposed initiatives when it comes to trade, notes that these tariffs have alarmed manufacturers and will inflict damage on the 2.3 million men and women who build equipment in the country. AEM’s senior vice president Kip Eideberg released the following statement:
Equipment manufacturers are alarmed by the Trump administration’s decision to impose sweeping tariffs on steel and aluminum, which will further escalate trade tensions and add to global economic uncertainty. This round of tariffs, and the retaliatory tariffs that will follow, will raise the price of steel and aluminum domestically and drive up the cost of manufacturing equipment in America.
We have been clear about the damage that tariffs on critical manufacturing inputs will inflict on equipment manufacturers and the 2.3 million men and women who build equipment in America. Tariffs have already contributed to higher input prices, disrupted supply chains, and created uncertainty for equipment manufacturers. The decision to impose tariffs on all steel and aluminum imports into the United States will significantly drive up the cost of producing equipment in the United States by as much as 7 percent and put American jobs at risk.
While we strongly support the Trump administration’s goal of strengthening our trade relationships and creating fair and favorable terms for America, tariffs will disrupt supply chains, threaten market expansion, place unnecessary strain on customers, and undermine our global competitiveness. We stand ready to work with the Trump administration to bolster American strength, including extending the successful Tax Cuts and Jobs Act and unleashing American energy security, and restoring the dignity of manufacturing work.
The United Steel Workers, North America’s largest private sector union with members in the United States, Canada and the Caribbean, spoke out against the tariffs specifically to Canada. United Steelworkers (USW) International President David McCall issued the following statement on Feb. 10.
Steel and aluminum serve as the backbone of our critical infrastructure and national security, and strong domestic industries have for generations enabled our nation to build bridges, supply power, outfit our military and more.
Our union welcomes President Donald Trump’s efforts to contain the global overcapacity that has for too long enabled bad actors like China to flood the global market with its unfairly traded products, resulting in surging imports into the United States, especially from Mexico.
At the same time, we must distinguish between trusted trade partners, like Canada, and those who are seeking to undercut our industries as they work to dominate the global market.
Read the full statement from McCall here.
However, the tariffs were not seen by all as a negative. Both the Aluminum Association and the Steel Manufacturers Association praised the tariffs.
Charles Johnson, president & CEO of the Aluminum Association, issued the following statement on Feb. 11.
We appreciate President Trump’s continued focus on strong trade actions to support the aluminum industry in the United States. During his first term the president was early to recognize the genuine threat that non-market actors pose to U.S. manufacturing industries like ours. These actions helped lead to more than $10 billion in industry investment since 2016. In order for these investments to be successful and for American firms to make the cars, trucks, beverage cans, fighter jets, body armor and more that our industry provides, we need ready and affordable access to metal. Today, there is not enough smelting capacity in the United States to supply the growing aluminum industry with the input materials it needs.
To ensure that American aluminum wins the future, President Trump should secure access to the aluminum metal supply needed for American manufacturers, while continuing to take every possible action at the U.S. border against unfairly traded aluminum from China and elsewhere. This is consistent with action his administration wisely took during his first term and we are confident he will take again.
And Steel Manufacturers Association president Philip K. Bell issued the following statement Feb. 10
The Steel Manufacturers Association applauds President Trump for putting the American steel industry and its workers first by imposing a 25 percent tariff on all steel imports. President Trump understands that America’s steel industry is the backbone of our economy. A thriving domestic steel industry is critical to U.S. national, energy and economic security.
The steel industry in America faces serious threats from foreign actors that seek to destroy domestic production. China and other countries routinely violate trade laws and dump heavily subsidized steel products into the United States at the expense of American workers. By imposing a 25 percent tariff on steel imports, President Trump is leveling the playing field for American manufacturers and workers and helping America defeat direct threats to our jobs.
In our recently released five-point plan, we highlighted expanding and strengthening the section 232 tariffs on steel imports as the most effective way to support the steel industry. Tariffs are a powerful tool to fight against unfair trade and state-sponsored overcapacity around the world and compel other nations to take a serious approach to fair trade. Today’s actions are a critical component of the president’s plan to restore American manufacturing and strengthen our national security. Embracing pro-growth tax policies, fighting unfair trade and comprehensive regulatory reform will fuel an economic renaissance.
This decisive action sends a clear message to the world: the United States will not tolerate unfair trade practices that harm American workers and industries.
