Some Windsor manufacturers fear they’re in for another financial gut punch as U.S. President Donald Trump threatens to impose a 25 per cent tariff on Canadian steel and aluminum exports — a move that could hit the region’s economy hard.
Trump announced Sunday he will introduce the new tariffs, though he has yet to sign an executive order.
That hasn’t eased concerns for Jonathon Azzopardi, CEO of Laval Tool, a Windsor-based manufacturer that employs around 100 people.
“That’s going to kill us,” Azzopardi said bluntly.
For his company, steel already makes up about 50 per cent of costs — a figure that could spike if the tariffs take effect.
“If you imagine 50 per cent of our cost of goods is steel, and we’re a million-dollar company. So, imagine how many millions are going to receive that 25 per cent tariff,” Azzopardi explained.
A familiar fight
This isn’t the first time Canadian manufacturers have faced this kind of threat.
Trump imposed the same 25 per cent tariffs on steel and a 10 per cent tariff on aluminum in 2018, triggering a trade dispute between Ottawa and Washington.
Those measures lasted about a year before a deal was reached.
Azzopardi warns this time could be worse.
“Don’t fool yourself. This is typically not a short period of time,” he said.
“This may go longer because we haven’t started the trade negotiations yet.”
Beyond the direct impact on businesses, Azzopardi points out a major challenge: Canada’s reliance on imported steel.
“The Canadian government would like to say, ‘we’ll just source it to a Canadian source,’” he said.
“Well, first things first — can you find a Canadian steel producer that can produce the steel you need? Because we buy some pretty specialty steel.”
With increased demand for Canadian steel, delays could become inevitable.
“Everybody’s going to the same place, right? And they’re trying to get that same steel,” he said.
“And then in the end, if there’s retaliatory tariffs on both sides, well, there’s no point, because you’re going to get [hit] whether you get it from a Canadian source or whether you get it from a U.S. source.”
Labour leaders sound the alarm
For workers on the ground, the stakes are high.
Emile Nabbout, president of Unifor Local 195 and the Unifor Independent Parts Supplier Council, says the tariffs would mean major cost increases and job losses across the industry.
“There is a lot of part[s] going back and forth… We have established a good working relationship between [the two countries], and [it] has been seamless in many cases,” Nabbout said.
“This 25 per cent on steel and aluminum is going to be devastating, especially to the steel manufacturing [sector].”
“Nobody can afford this. And I don’t think this will benefit the American people as well,” he added.
Despite the uncertainty, he said giving up is not an option.
“If we give up, we give up our job. We give up our sovereignty. We give up on our community,” he said.
“We have to fight back. And we have to find a diplomatic approach to figure out how Donald Trump thinks and why he does that.”
Calls for Ottawa to act
With negotiations still in the early stages, Azzopardi is concerned about Canada’s response, especially with Parliament prorogued and an election looming.
“We need to get our government back to work so that they can start to work on these trade negotiations,” he said.
“We need to start making progress now.”
Local businesses mobilizing
With uncertainty hanging over the industry, Windsor manufacturers are taking matters into their own hands.
Azzopardi says a local task force is already forming to help businesses navigate the potential tariffs.
“There is a task force that’s being formed right now that’s looking out for the businesses and the people who rely on those businesses,” he said.
“That task force is starting to put their ideas together on how to manage these tariffs as they come down the pipeline.”
