Quebec steel and aluminum producers brace for challenges as Trump imposes 25 per cent tariffs

After U.S. President Donald Trump signed an executive order Monday to implement 25 per cent tariffs on all steel and aluminum imports into the United States beginning March 12, steel and aluminum producers and manufacturers in Quebec say these tariffs will present challenges in maintaining American clients. 

“We feel that it doesn’t make any sense,” said François Racine, Chief Executive Officer of AluQuébec. “It will be damaging for both U.S. and Canadian manufacturers. It will increase the price of aluminum by 25 per cent on both sides of the borders. And I mean, U.S. industry will be less competitive as Canadian industries will be.”

One Quebec company potentially impacted is Solucan, they provide a printing service on aluminum cans imported from the U.S. and 30 per cent of their clients of printed cans are American, so these tariffs would make it more difficult to continue to do business south of the border. 

“Those tariffs kill that relationship that I have with those customers,” said Sébastien Baril, president of Solucan/Bevcraft Canada. “So 30 per cent of my business is now open. I have to prospect it elsewhere and basically competitors that I have, Canadian based, will all do the same.”

Université Laval professor of strategy Yan Cimon says that these tariffs will also have an adverse effect on the U.S. because of the increased costs it could have on the aerospace, automotive and food and beverage industries. 

“Unfortunately, these tariffs will backfire,” said Cimon. “All the scenarios that look at tariffs on these industries, basically even in a case where it’s only the U.S. that’s imposing tariffs, there is a general decrease in well-being for America as a whole.”

The Aluminium Association of Canada says that the tariff on aluminum is unfair and highly disruptive and that it will hurt American jobs and industries as well as increase prices, especially for American consumers. 

“If you take a Ford 150, which is the highest selling vehicle in the history of the automotive sector, just the aluminum input will represent an additional cost of $1,500 per truck when we’re not even talking about the steel input,” said Jean Simard, president and CEO of the Aluminium Association of Canada.

“I’m fairly positive, optimistic about the situation that we’ll get through. And if not with the U.S., well, let’s make this thing our own, basically manage our futures ourselves and be independent,” said Baril.