Canadian metal workers are starting to feel the effects of President Donald Trump’s trade war. New reports claim that hundreds of steel and aluminum workers have been laid off leading up to and after the President’s tariffs went into effect. United Steelworkers National Director Marty Warren has heard of at least 200 job cuts. This union has more than 225,000 members in Canada.
Individual companies have also reported layoffs in light of President Trump’s tariffs. Canada Metal Processing Group has already cut 140 jobs, while Algoma Steel (ASTL) has laid off roughly 20 workers. These cuts include both permanent and temporary layoffs, as well as freezes on hiring new workers.
Layoffs Are Expected to Increase Next Month
Canadian metal companies are bracing for more tariffs when a temporary halt is expected to end next month, further increasing tariffs on steel exports to the U.S. Warren told Reuters, “With the full-blown tariffs coming in on April 2 … it’ll probably affect 100,000 of our members.”
President Donald Trump is focused on reducing America’s reliance on foreign goods. Adding tariffs is one way to do that, as they promote U.S. manufacturing. While that could be a boon to America, it harms countries that trade with it. Canada, one of the U.S.’s biggest trading partners, is especially affected, as its the largest metal supplier to the U.S.
What Stocks Are Worth Buying During Trump’s Trade War?
Investors will want to stick to U.S.-based manufacturing companies to avoid tariffs during the trade war. President Trump’s plan should help boost stocks in this category. That includes metal producers such as Nucor (NUE), Cleveland-Cliffs (CLF), United States Steel (X), Steel Dynamics (STLD), and Reliance Steel (RS). Each of these stocks has consensus Moderate Buy ratings, with CLF offering the largest upside potential at 41.17%.
