The Globe and Mail reports in its Tuesday edition that Canadian steelmakers, alongside much of the country's economy, had been girding for a 25-per-cent import tariff into the United States. The Globe's Niall McGee writes that the industry is almost exclusively dependent on the U.S. for its exports, and it has few options to sell the metal to other markets. "We're looking at a doomsday scenario," François Desmarais at the Canadian Steel Producers Association said Monday, before a 30-day reprieve was announced. If Mr. Trump follows through on implementing the tariffs, they will result in a vicious circle of less demand from U.S. customers and fewer imports for Canadian steelmakers from the U.S. That is because a lot of the inputs that Canadian steelmakers use, such as iron ore and coke, come from the U.S. "Because we're selling less, we're going to probably lay off a lot of employees because a blast furnace cannot be switched on and off as we wish," he said. The steel industry directly employs 23,000 people in Canada. A global glut means there is little demand from other countries for Canadian steel. The major steelmakers in Canada are Algoma Steel; Cleveland-Cliffs, owner of Stelco; and ArcelorMittal, owner of Dofasco.
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