Ivaco Rolling Mills in 郭O娶勳眶紳硃梭 is preparing for a 25 per cent tariff to be introduced by the Trump administration on Canadian-made steel being imported into the United States. Those preparations include a hiring freeze and its parent company deciding to reduce the company-wide workforce.
Tariffs on all Canadian goods being imported into the US originally began on Tuesday, March 4. However, on Thursday, March 6, Trump decided to delay many of the tariffs covered by the United States Mexico Canada Agreement (USMCA) until April 4. On Friday, March 7, he changed his mind yet again and said a 25 per cent tariff on steel from Canada was imminent, and could be implemented on Monday, March 10, Tuesday, March 11, or Wednesday, March 12.
Our steel products are currently excluded from tariff under the USMCA requirement, but we are still facing the threat of an additional 25 per cent under section 232 on March 12 next week, said Canada Metal Processing Group Director of Marketing and Business Development, Frederic Perron. Section 232 is a part of the US Trade Expansion Act which allows the President to impose tariffs in the name of national security.
Canada Metal Processing Group (MPG) of the Heico Companies is the parent of Ivaco, and its other subsidiaries Infasco and Sivaco in Marieville, Qu矇bec. Ivaco primarily manufactures steel wire rod and billets. Due to the imminent tariffs, MPG has decided to reduce its workforce in both Ontario and Quebec but has not said by how much. A freeze on all new hiring at Ivaco has been implemented.
MPG is urging the federal government in Canada to provide support to workers and businesses during this crisis, and to prevent the dumping of steel by other countries into Canada by instituting remission surtaxes and removing associated exemptions.
This will create a uniform North American steel and steel products market aligned with the US and protected from external unfair imports. MPG Canada will deploy the best efforts to protect its factories and its workers from further harm as a result of the United States actions, said a statement issued by MPG on March 4.
The steel tariffs taking effect March 12 are on top of the 25 per cent tariffs already proposedbut erratically delayed, but the Trump administration.
On Friday, March 7, the federal government announced various measures to support businesses and ensure they have the liquidity they need amid the uncertainty. These measures include making $5 billion available over two years through to help exporters reach new markets for Canadian products and help companies navigate the economic challenges imposed by the tariffs, including losses from non-payment, currency fluctuations, lack of access to cash flows, and barriers to expansion. The government is providing $500 million in favourably priced loans available through the to support impacted businesses in sectors directly targeted by tariffs, as well as companies in their supply chains.
For workers, the government is introducing temporary flexibilities to the to increase access and maximum agreement duration. The Work-Sharing Program provides EI benefits to employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their employers control. This helps employers retain experienced workers and avoid layoffs and helps workers maintain their employment and skills while supplementing the reduced wages with EI benefits.
