Steel tariff battle isn't over yet, Sault leaders warn

Notwithstanding today's decision temporarily relieving Canada from U.S. steel tariffs, Sault politicians are pledging to stand firm to ensure the exemption becomes permanent.

"We'll continue to make the case that Canadian steel is important to the U.S. market and U.S. supply chain," Mayor Christian Provenzano told SooToday after U.S. president Donald Trump announced that Canada and Mexico will be the only two countries exempted from the 25 per cent steel import tariff he slapped on all other nations.

Mayor Provenzano thanked Ontario Premier Kathleen Wynne and Prime Minister Justin Trudeau for helping the Sault stand up for Canadian steel.

"We think in light of the facts, and the reality that Canada and the U.S. share an integrated and balanced relationship in steel, exempting Canada is the most reasonable force of action," the mayor said.

President Trump made no direct connection today between Canada's tariff exemption and the ongoing North American Free Trade Agreement negotiations, but he did mention the NAFTA talks, more or less in the same breath.

''If we don't make the deal on NAFTA, and if we terminate NAFTA.. we'll start all over again. Or we'll just do it a different way. But we'll terminate NAFTA, and that'll be it. But I have a feeling we're gonna make a deal on NAFTA... If we do there won't be any tariffs on Canada, and there won't be any tariffs on Mexico,'' the president told reporters at the White House.

Kalyan Ghosh, Algoma

"We are strong advocates for fair trade," said Kalyan Ghosh, chief executive officer of Essar Steel Algoma Inc.

"Today's announcement excluding Canada from the Section 232 tariff recognizes the importance of our trade relationship with the U.S. and ensures our highly integrated supply chain can continue unimpeded," Ghosh said.

"These developments also reinforce the need for modernization of the trade remedy system here in Canada to address the risk of unfairly diverted steel tons into our domestic market."

"We will continue to advocate for a timely resolution with the steel caucus and the federal government," the Algoma CEO said.

Terry Sheehan, MP

Sault MP Terry Sheehan said that any attempt to reintroduce tariffs into the North America Free Trade Agreement talks would be unacceptable.

"It is imperative that we remain vigilant," Sheehan said in a written statement. "We must continue to hold the line, so that Canada remains excluded from these tariffs permanently."

"Canada has been, and always will be, a safe and secure supplier of steel for the U.S, which makes the claim that a tariff should be imposed based on 'national security concerns' entirely inappropriate," the MP said.

"I conclude that Canada and Mexico present a special case," the president said in his proclamation on steel imports signed today:

Trump's proclamation cited the following factors as influencing his decision to indefinitely exempt Canadian steel from the 25 per cent tariff:

• "our shared commitment to supporting each other in addressing national security concerns"
• "our shared commitment to addressing global excess capacity for producing steel"
• "the physical proximity of our respective industrial bases"
• "the robust economic integration between our countries"
• "the export of steel articles produced in the United States to Canada and Mexico"
• "the close relation of the economic welfare of the United States to our national security"

"I have determined that the necessary and appropriate means to address the threat to the national security posed by imports of steel articles from Canada and Mexico is to continue ongoing discussions with these countries and to exempt steel articles imports from these countries from the tariff, at least at this time," the president said. "I expect that Canada and Mexico will take action to prevent transshipment of steel articles through Canada and Mexico to the United States."

Ross Romano, MPP

"This announcement is a great step towards protecting jobs within the industry and within our community of Sault Ste. Marie," said Sault MPP Ross Romano, who last week urged diplomacy and negotiations instead of retaliatory measures again the Trump steel tariffs.

"I want to take this opportunity to thank Mayor Christian Provenzano and Member of Parliament Terry Sheehan for recognizing the importance of the need for diplomacy during the past week. It was very reassuring to have their support and a great sign of what we can achieve when we work together towards a common goal, regardless of our political stripes."

"The people of Sault Ste. Marie should be proud to have our political representatives at all levels of government rowing in the same direction," Romano said.

Wayne Schmidt, Michigan State Senator

The MPP also extended appreciation to Michigan State Senator Wayne Schmidt.

"I want the people of Sault Ste. Marie to know how instrumental Senator Schmidt has been this past week. From our first conversation and many since then, he and I have maintained great communication together speaking about the effect these proposed tariffs would have on our local economy and on Michigan’s economy. He recognized that if there was a closure of Algoma in Sault Ste. Marie, Michigan would immediately be forced into a recession. His efforts to ensure that did not happen, for both our mutual benefits have been substantial and are much appreciated," Romano said.

By law, President Trump's steel tariffs needed to be described as a national security matter.

A provision in a 1962 U.S. law allows the president to set emergency tariffs as a security issue.

Canada is the No. 1 seller of both steel and aluminum to the United States.

Full-court diplomatic press

The fact that Canada might be included on the initial hit list had become a political sore spot for the administration.

A full-court diplomatic press unfolded in recent days, with Prime Minister Justin Trudeau calling Trump earlier this week, and then speaking Thursday with the Republican leaders of both the House of Representatives and the Senate.

Canada's ambassador to Washington dined this week with U.S. national-security adviser H.R. McMaster.

Foreign Affairs Minister Chrystia Freeland, Natural Resources Minister Jim Carr, Defence Minister Harjit Sajjan, and Transport Minister Marc Garneau all reached out to cabinet counterparts in recent days.

The lobbying found a mostly receptive audience: the U.S. military strongly resisted tariffs against allies, and 107 congressional Republicans released a letter this week to express their alarm over the move.

United Steelworkers

The United Steelworkers joined the call today for permanent exemptions for Canadian steel and aluminum.

"Canadian steel and aluminum exports are not part of the problem that the U.S. administration is trying to address through its tariff measures," said USW National Director Ken Neumann.

"We are relieved by the temporary exemption, to the extent that it recognizes Canada is not the problem," Neumann said.

"But a temporary exemption creates considerable economic uncertainty for Canadian producers and will be counter-productive to making progress in the NAFTA renegotiations. That's why the exemption must be permanent."

"The U.S. government launched an investigation into steel and aluminum imports to respond to countries whose trade practices represent a threat to American national security," Neumann said.

Marty Warren, Steelworkers director for Ontario and Atlantic Canada, added: "The evidence confirms there are many countries that engage in unfair, illegal and predatory trading practices that have created a global steel glut and depressed prices affecting all steel and aluminum markets."

"These 'bad actor' countries, including China, Egypt, India, Malaysia, Korea, Russia, Turkey and Vietnam, have harmed the entire North American market. Canada is not one of these bad actors," Warren said.

"The federal government must be prepared to use all measures at its disposal, including targeted safeguard actions, government-initiated trade cases and increasing resources to the Canada Border Services Agency to investigate and respond to increased dumping of product into the Canadian market," said Neumann.

- with files from Alexander Panetta of The Canadian Press