“We need to be looking at how we can expand domestic production, creating more jobs, more products here at home.”
Saskatchewan New Democratic Party Leader Carla Beck called for the provincial government to take some direct action to counteract the impact of American tariffs on the province’s steel industry.
Beck held a news conference on Wednesday at Supreme Steel, north of Saskatoon in the Rural Municipality of Corman Park, calling for the government to prioritize Saskatchewan companies when awarding contracts for public projects.
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“We need to be looking at how we can expand domestic production, creating more jobs, more products here at home,” she said.
The NDP’s critic for SaskBuilds, Erika Ritchie, echoed Beck’s messgae. The MLA for Saskatoon Nutana said the government needs to take the lead in the current climate by prioritizing provincial producers.
“We’ve seen too many Saskatchewan government contracts go to American companies over Saskatchewan companies,” she said.
Since American tariffs have re-emerged, there have been calls from many quarters to do away with regulations that inhibit interprovincial trade; this sentiment has also been echoed by Premier Scott Moe.
Beck said what the NDP is calling for does not conflict with efforts to increase interprovincial trade, noting other provinces have taken similar actions that do not conflict with existing interprovincial trade agreements.
“This is about getting best value for Saskatchewan tax dollars when we’re looking at public procurement,” she said.
Beck said there also needs to be a focus on finding alternative markets and developing trade infrastructure. The most recent numbers showed Saskatchewan exports almost $400 million worth of steel to the U.S. annually.
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The future is uncertain, which means the government should be doing everything in its power to counteract any negative impacts, she said.
“We don’t know what’s coming.”
David Fritz, president and chief operating officer at Supreme Steel, said the company dealt with fallout from tariffs during the first Trump administration, but this new round of tariffs is different and could prove more challenging.
“They seemed to be more broad, the tariffs this time, more encompassing;(Trump) appears to be allowing for less exemptions and exclusions,” he said.
Supreme Steel in Saskatchewan employs around 100 people and usually relies on U.S. customers for 10 per cent of its revenues, he said, adding that the number can fluctuate due to a range of factors.
Fritz said the company’s American purchasers will likely re-evaluate buying from Canadian companies. The historically stronger American dollar has incentivized U.S.-based companies to purchase Canadian steel as the exchange rate saved them money, but the recent tariffs will change this, he added.
“Now with a tariff, especially as high as 50 per cent, it would no longer make it viable to buy that fabricated product from Saskatchewan and Canada.”
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Fritz said Supreme Steel will be looking for new customers and could also be affected if counter-tariffs are imposed on American companies shipping steel in to Canada, since Supreme sources steel from the U.S.
“We’re going to find the work. We’ve been really successful finding work domestically, so that’d be where we shift our focus,” he said.
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