Canadian businesses are warning that a new 25 per cent federal tariff on imported steel derivative products could drive up prices across the economy, from cars to new homes.
The tariff, set to take effect Dec. 26, applies to foreign goods containing steel, including wires, prefabricated buildings, wind towers and fasteners such as nuts, bolts and screws. The federal government says the measure is intended to boost demand for Canadian steel and reduce reliance on imports.
However, industry groups say many of these products are not made domestically. Kimberly Turner-Briscoe, president of Cardinal Fasteners, said distributors will be forced to raise prices, as steel products already in transit will also be subject to the levy.
The Canadian Federation of Independent Business says small and medium-sized firms were not consulted and face rising costs and uncertainty. While the Canadian Steel Producers Association supports the tariff as a way to protect domestic jobs, business groups warn the added costs could ripple through construction, manufacturing and housing at a time of economic strain.