Steel Industry in Hamilton Faces Turbulent Times Amid Trump’s Tariffs

Steel producers in Hamilton, Ontario, are grappling with the repercussions of the tariffs imposed by U.S. President Donald Trump, which have sent shockwaves through their operations and workforce. Prior to the official enactment of these tariffs, the effects were already being felt as major clients began halting orders, leading to widespread layoffs and uncertainty within the industry.

Frank Crowder, president of the United Steelworkers (USW) Local 7135, which represents National Steel Car workers, reported that approximately 90% of the company’s workforce of 1,400 faced layoffs between mid-November and the Christmas season last year. Although some of these workers have since returned, a lingering fear of further job cuts remains as the company relies heavily on the U.S. market, which is now subjected to stringent tariffs.

The new tariffs differ significantly from those during Trump's first presidential term. Previously, many Canadian steel products, including those made by National Steel Car, were exempt; now, the tariffs apply broadly across the sector. This shift has left local steelmakers, particularly those like National Steel Car that produce freight rail cars predominantly for American customers, on uneasy ground. “They don’t know which way to turn, because we don’t know what’s happening,” stated Crowder, reflecting the confusion pervasive throughout the industry as Trump wavers on policy decisions.

The stakes were raised when Trump threatened further escalation in tariffs, prompting a swift response from Ontario Premier Doug Ford, who imposed a 25% surcharge on electricity exports to the U.S. Although Ford later retracted this measure, the erratic nature of the tariffs has left many in the industry feeling adrift.

In stark contrast to National Steel Car, Stelco—a larger primary steelmaker with facilities in Hamilton and Nanticoke—has shown greater resilience, with around 70% of its production sold domestically. USW Local 8782 President John McElroy, who has worked in high-heat conditions for generations, expressed a sense of chaos permeating the situation. “We’re not sure of the business plan. It seems like we’re just riding the roller coaster,” he said.

While the steel industry faces enduring challenges, there have been some short-term financial benefits. Terry McKinnon, a vice-president with USW Local 8782, noted steel prices surged from approximately $700 to over $900 per ton, reflecting a potential silver lining amidst the chaos. However, the question remains whether customers will sustain their purchases at these higher prices, given the broader economic impact of the tariffs.

Cleveland-Cliffs, the U.S.-based owner of Stelco, has benefitted from the tariffs, which cushion its operations from foreign competition. CEO Lourenco Goncalves publicly commended the Trump administration for implementing measures that he believes address excessive foreign steel production.

As the complexities of the tariff regime continue to unfold, steelmakers like Algoma Steel, the only independent Canadian producer, are intensifying their efforts to capture domestic business, actively seeking opportunities to replace imported steel with Canadian products.

With an unpredictable political landscape and the potential for further changes in trade policy, steel producers in Hamilton and beyond are bracing for what lies ahead. The resilience and adaptability of these workers and companies will be put to the test as they navigate through these tumultuous times.