Theres no panic yet and its not widespread so far, but the Trump steel and aluminus taridffs have forced layoffs at a specialty steelmaker in the Soo. A spokesman for Tenaris, which manufactures seamless steel pipes, says 40 workers at the company’s mill in Sault Ste. Marie, Ont., will be laid off due to changes in the export market. David McHattie says the employees were hired at the northern Ontario mill to help with increased demand for the company’s products, including steel pipes.

But now that  the Trump administration imposed a 25 per cent tariff on steel and a 10 per cent tariff on aluminum, which Tenaris says has created an “unsustainable” market. The company has operations around the world and says the market remains uncertain as the trade dispute between the United States and Canada continues. The layoffs come the same day Canada’s retaliatory tariffs on American goods come into effect.

So far Hamilton steel makers continue to ship product to their US customers but warn the situation is not sustainable in the long run. The situation is eased somewhat by the high global steel process that currently exist.

Providing a Fresh Perspective for Burlington and Hamilton.

One Comment to: Trump steel tariffs affecting selected Canadian manufacturers

  1. Marshall

    July 22nd, 2018

    “[Trump’s] tax reform hasn’t yet resulted in appreciably higher wages for American workers. Real average hourly compensation actually fell in the first quarter after the tax reform was passed… Official data for the second quarter isn’t available yet, but private data isn’t looking encouraging. PayScale’s index of real wages shows a dramatic deterioration in the period…Some have expressed dismay that stock buybacks seem to have taken precedence over boosting capital investment. Since the tax cuts passed, companies have been using buybacks to return record amounts of cash to shareholders — more than $700 billion in the first two quarters. Huge, immediate gains for wealthy shareholders combined with tepid increases in business investment and decreases in real wages don’t paint a flattering picture of the tax cut’s impact so far. There is, however, a possibility that the tax cut has acted as a Keynesian fiscal stimulus, helping to push down unemployment. But that’s not exactly the long-term structural improvement that the bill’s supporters advertised. And as a recent research note from the Federal Reserve Bank of San Francisco points out, fiscal stimulus in good economic times is less effective than in recessions. And growth hasn’t really sped up either — real per capita gross domestic product growth was only 1.34 percent in the first quarter, below 2017’s pace, and considerably less than in 2014 and 2015, This tepid rate of growth means that the tax cut is unlikely to pay for itself. By this point, almost all economists recognize that income tax cuts no longer stimulate the economy enough to reduce deficits, as supply-siders thought they would back in the 1980s. But economists still held out some hope that lowering the corporate tax, which is believed to be more harmful than the personal income tax, would have a more salutary effect on the budget. Unfortunately, that hope appears to be fading, as fiscal deficits increase rapidly. There’s still the possibility that Trump’s tax reform will bear fruit in the long term. But early results are pointing to another possibility — that tax cuts have run their course as an economic policy.”

    https://www.bloomberg.com/view/articles/2018-07-18/trump-s-tax-cut-hasn-t-done-anything-for-workers

    Reply

Leave a Reply

  • (not be published)