Sault Ste. Marie in Ontario and Michigan share a border — and now a very big tariff threat

Canadians and Americans sit next to each other in the stands of a small Sault Ste. Marie, Ont., hockey arena to watch the Soo Thunderbirds face off against their cross-border rivals, Michigan's Soo Eagles.

The fierce clash on the ice has most people's attention, but anxiety lingers about something else: Donald Trump's threatened 25 per cent tariff on all Canadian goods.

The U.S. president-elect made the threat in a post on his platform Truth Social last week. All goods from Canada and Mexico would be tariffed, he said, until they cracked down on drugs and migrants illegally entering the U.S. 

It's unclear whether Trump will actually enact the tariff, or is promising to do so as a negotiation tactic. However, for Sault Ste. Marie in Ontario and in Michigan, two cities located a short drive from one another, the proposed tax threatens the close relationship they've enjoyed for generations. 

"The thought of it is scary," said lifelong Ontario Sault resident Meta Motiejunas. "I'm sure it would … possibly close down our companies that are keeping this city together."

Sault Ste. Marie, Ont., is a steel town. Smoke stacks from Algoma Steel tower along the banks of the St. Marys River which separates the two countries. Nestled nearby in the same industrial area is Tenaris, a pipe manufacturer, behind tall fences. 

Between them, the two companies employ 3,600 people, according to the city's economic development office, not including the hundreds of contractors who also work there and in related industries. In all, an estimated 9,400 — or 23 per cent of its total workforce — is employed in some way by steel.

The industry also employs Americans who cross the bridge every day to work

To Canadian retired steelworker Morris Bajor, Trump's threats ring hollow.

"I think he's just trying to raise a big ruckus. I doubt very much if he'll do it," he said, though he acknowledged it would be very bad for Canada.

But Kevin Bosbous, leaning up close against the plexiglass to cheer on the Eagles, says it will also be bad for Sault Ste. Marie, Mich., too.

"The Canadian folks come over and help this Sault Michigan economy. So I don't think there should be a tariff at all," said the American retiree, whose parents were in the grocery business and relied on cross-border shoppers.

"It would affect us considerably because people wouldn't be going over to do their shop and buying their gas."

Donald Trump's 25 per cent tariff on Canadian steel in 2017 lasted for about 11 months. There were dozens of layoffs throughout the sector in Sault Ste. Marie, Ont. That has the United Steelworkers union watching this situation very closely.