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Author Fast Webs<.>, <.>

* 140 workers laid off due to tariff-induced demand drop
* Steel group urges for immediate enactment of ‘retaliatory tariff measures’

Canada Metals Processing Group is laying off employees and pausing or canceling projects in response to US tariff threats on Canadian steel imports, MPG Canada said Feb. 24.
US President Donald Trump has promised to levy a 25% tariff on all Canadian imports on March 4 and 25% tariffs on all steel imports starting March 12. The actions have led to significant trade tensions and concerns of a recession in Canada. The US imported 5.3 million mt of Canadian iron and steel products in 2024, according to S&P Global Market Intelligence. MPG Canada is made up of three steel-producing firms, Ivasco Rolling Mills, Sivaco, and Infasco.
“In light of lower anticipated demand and production volume, due to US tariff threats and trade challenges in Canada with increasing imports, the [response] measures include a workforce reduction of 140 production and office employees in Ontario and Quebec, implementation of cost savings actions, and the cancellation or pause of some projects,” MPG Canada said in a statement.
Although tariffs have not yet been implemented, the group said the threat of these tariffs has already reduced demand for MPG Canada’s products.
The canceled or paused projects will not impact MPG Canada’s capacity levels, Frédéric Perron, the company’s director of marketing and business development told Platts, a part of S&P Global Commodity Insights.
“These projects were improvement or investment projects within our existing facilities,” Perron said. “These were aimed at increasing capacity, efficiency and reliability of our plants.”
“While it is impossible at this juncture to predict how long these actions by the United States will last, the Canadian government must be prepared to react quickly to safeguard the long-term viability of Canadian steel product manufacturers, and the collective job security of our employees,” Matt Walker, MPG Canada president said in the statement.
MPG Canada called on the Canadian government to “immediately prepare to implement matching retaliatory tariff measures without any consultation delay.”
Ivaco Rolling Mills focuses on producing hot-rolled steel products, particularly wire rods and rebar. Sivaco is involved in the production of steel wire and wire products. Infasco specializes in manufacturing fasteners, including bolts and nuts, primarily for industrial and construction applications.
Platts assessed the daily TSI US hot-rolled coil index at $850/st on an ex-works Indiana basis on Feb. 21, up 23.19% from $690/st when Trump first announced the tariffs on Nov. 25.