U.S. steel tariffs result in 40 layoffs in Sault Ste. Marie

SAULT STE MARIE, Ont. - A manufacturing company is laying off workers in Ontario in response to American tariffs on Canadian steel and aluminum.

A spokesman for Tenaris, which manufactures steel pipes, says 40 workers at the company's mill in Sault Ste. Marie will be laid off on Sunday 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 months later, 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 to serve its U.S. customers.

McHattie says the company is also adjusting its production levels as a result of the tariffs and what he calls the ``effect of increased import competition in Canada from countries no longer able to sell in the U.S.''

Tenaris is based in Luxembourg and has operations around the world. The company says the market remains uncertain as the trade dispute between the United States and Canada continues.

Meanwhile, the Canadian retaliation for those tariffs begins Sunday, amounting to 16.6 billion dollars. The Trudeau government is planning to spend two billion dollars to bolster the steel and aluminum sectors.