CBTU welcomes federal tariff supports as Canada doubles duties on U.S. steel, aluminum

Ontario Construction News staff writer

Canada is doubling its tariffs on American steel and aluminum and imposing new duties on hundreds of other U.S. products as part of a $27.6-billion retaliatory package, while the country’s building trades are welcoming new federal supports for workers and businesses hit by the escalating trade war.

Effective Sept. 8, Canada will raise its existing tariffs on U.S. steel and aluminum to 50 per cent from 25 per cent. Additional duties ranging from 15 to 50 per cent will apply to more than 700 American products, including machinery, hand tools and other goods used throughout the construction supply chain.

The federal government said the measures are intended to match the latest round of U.S. tariffs on Canadian goods dollar for dollar.

Ottawa also announced $7.5 billion in new support for workers and businesses affected by tariffs, including expanded Employment Insurance measures, a new $2-billion fund for tariff-affected companies and changes aimed at making federal financing more accessible.

Canada’s Building Trades Unions (CBTU) welcomed the measures, particularly the temporary extension of EI relief for workers affected by U.S. tariffs on industries including steel, aluminum and automotive manufacturing.

The organization also welcomed changes to the work-sharing program intended to make it easier to access and available to more workers.

The building trades said the measures are a positive step toward protecting and reinforcing Canada’s unionized skilled workforce.

The federal package includes $2 billion through the new Canada Strong Diversification Fund to support tariff-affected businesses with shovel-ready projects and ongoing capital maintenance.

Another $3.5 billion will provide rapid-response support for workers and employers, including extended temporary EI measures, workplace training and a new Worker Retention and Retraining Program aimed at helping employers keep workers on the payroll during the trade disruption.

Access to Business Development Bank of Canada tariff-related programs is also being broadened by lowering the minimum revenue requirement for applicants to $1 million.

Finance Minister François-Philippe Champagne said Canada’s response is intended to be “proportionate, targeted and strategic” while supporting workers, businesses and industries affected by the U.S. measures.

“We will support our workers, our businesses and our industry with whatever it takes, for as long as it takes,” Champagne said.

For the construction industry, the escalating dispute adds another layer of uncertainty to supply chains already affected by tariffs on steel, aluminum and other materials.

The Building Trades Unions said continued delays in negotiations and rising tariffs reinforce the need to strengthen domestic supply chains, protect Canadian jobs and ensure major infrastructure, industrial and energy projects continue to move forward.

Those projects should be planned and delivered in a way that maximizes employment opportunities for Canadian workers and makes full use of Canadian labour and expertise, the organization said.

The building trades are also calling for stronger co-ordination of major projects and workforce planning through mechanisms such as a Labour Supply Coordinating Committee, which would align project timelines with workforce availability, training and mobility.

Such an approach would help Canada build domestic capacity while prioritizing Canadian tradespeople affected by tariffs, the organization said.

The new Canadian counter-tariffs target $27.6 billion worth of goods, including products in sectors already hit by U.S. tariffs, such as steel, aluminum, autos and lumber.

Federal officials have said Ottawa is also working to limit the effect of its retaliatory measures on Canadian businesses, including through programs that could help companies replace tariffed American products with alternatives.

The latest escalation follows the collapse of trade negotiations between Ottawa and Washington that had appeared close to producing an agreement last week. U.S. President Donald Trump has since threatened further tariffs on Canadian products.

As the dispute continues, the Building Trades Unions said the focus must remain on keeping Canadian workers employed, strengthening domestic supply chains and ensuring Canada can move major projects forward despite the growing uncertainty.

The organization said better co-ordination between governments, industry and labour could help build domestic capacity, support workers and communities, and strengthen Canada’s economic resilience.