Hamilton steelworkers hang onto jobs for now but brace for impact as U.S. doubles industry tariffs

It's not clear what increased U.S. steel tariffs will mean for Hamilton, but workers and industry leaders agree it's nothing good.

"The fear is these additional tariffs might hurt Stelco's customers and their ability to sell to their U.S. customers," Ron Wells, who represents workers at that steel manufacturer, told CBC News Network Wednesday.

"The trickle-down effect could have adverse impacts on Stelco and our workforce."

U.S. President Donald Trump signed an executive order Tuesday applying a 50 per cent tariff to steel and aluminum Americans import. The order took effect Wednesday, doubling tariffs that had already been in place since March 12.

At Stelco — which has factories in Hamilton and Nanticoke, Ont., and is owned by American company Cleveland-Cliffs — Trump's tariffs have already had a big impact.

According to Ron Wells, president of United Steelworkers Local 1005, his employer lost all its U.S. business, representing about 30 per cent of its work. It made back 10 per cent with additional Canadian customers, Wells said. Now, the fear is companies that buy from Stelco then sell to the U.S. will find it harder to do so and therefore buy less.

There haven't been job losses at Stelco, Wells said, though in Hamilton, the company isn't hiring temporary summer staff like usual. There are about 650 hourly workers in the bargaining unit in Hamilton, 1,100 in Nanticoke, and a few hundred non/union managers who work at Stelco, he said.

Overall, Wells said, workers he represents seem more upset than scared right now. "No one needs this additional stress or frustration."

CBC Hamilton contacted Stelco for comment on the increased tariffs but did not receive a response. 

John-Paul Danko, newly elected MP for Hamilton West—Ancaster—Dundas said uncertainty is causing "immense stress and anxiety for Hamilton families." 

The steel industry employs over 10,000 workers directly and there are up to 40,000 local jobs "at risk in associated industries" due to the tariffs, the former city councillor said in a statement Wednesday. 

Hamilton Mayor Andrea Horwath also issued a statement condemning the tariffs, saying they "put thousands of good jobs at risk," delay investment and "threaten the stability our industries need to thrive."

"The longer this goes on, the larger the impacts are gonna be," Greg Dunnett, head of the Hamilton Chamber of Commerce told News Network. The community is supporting affected businesses for now, he said, but if the trade war drags on, it becomes more likely companies will go into "survival mode."

In Hamilton, Dunnett said, there's a strong advanced manufacturing sector built around Stelco and ArcelorMittal Dofasco. When steel prices go up, he said, demand goes down.