Thursday, February 13, 2025
U.S. Imposition of Tariffs on Imported Steel and Aluminum
Oligarchs Have Nation-Wrecking in Common
• Oligarchs Have Nation-Wrecking in Common
U.S.- Canada Alliance in Energy and Minerals
• Government of Canada Proposes Increasing Sellout to U.S.
Premiers' Mission to U.S.
• Disgraceful Performance Pitches Deeper
Integration
into U.S. War
Economy
U.S. Imposition of Tariffs on Imported Steel and Aluminum
Oligarchs Have Nation-Wrecking in Common
On February 10, the Donald Trump administration in the U.S. went ahead and re-imposed tariffs on steel and aluminum originally imposed in 2018 which were subsequently reduced/amended. This is outside Trump's agreement to a one month delay in imposing 25 per cent tariffs on Canada and Mexico.
The "reason" given is that steel and aluminum imports "threaten U.S. national security." According to the Trump edict, they do so "by preventing the domestic steel industry from achieving sustained production capacity utilization of at least 80 per cent, as determined necessary in the Secretary's report of January 11, 2018."
This makes no sense whatsoever given the fact that the U.S.
economy,
which stands as part of the heavily integrated manufacturing markets of
North America and Mexico, relies on Canadian and Mexican, as well as
Brazilian aluminum and steel production. Devoid of discussion
on
specifics of the process of production, it is impossible to ascertain
what it means for the U.S. to achieve "sustained production capacity
utilization of at least 80 per cent."
But even
without these
specifics to grapple with how to deal with Trump's threats, the workers
have a lot of experience that allows them to find their bearings and
oppose what is going on.
In 2018 when the first Trump administration imposed tariffs of 25 per cent on steel imports and 10 per cent on aluminum imports, the Canada/U.S./Mexico free trade agreement was in the midst of being negotiated, as U.S. Secretary of Commerce Wilbur Ross never failed to mention at that time. Ross was the Wall Street "distressed-asset investor" who seized many of the steel plants in the U.S. which either went bankrupt or filed for bankruptcy protection (including Bethlehem Steel) and formed ISG (International Steel Group) in the early 2000's.
Any suggestion that the oligarchs involved and their champions in both the U.S. and Canada are motivated by anything but their own private profit has been put to rest time and time again and the workers know it. Several years after Wilbur Ross formed ISG, after 249,000 U.S. steelworkers had their pensions gutted by anywhere from 10-70 per cent, he sold ISG to ArcelorMittal and reportedly made over $4 billion on the sale. In 2021 it was reported that during his four years as Secretary of Commerce for Donald Trump, he racked up "a minimum of $53 to $127 million in outside income," Citizens for Responsibility and Ethics in Washington revealed.
One of Wilbur Ross' henchman, Rodney Mott, took over Stelco in 2006 after the fraudulent Companies' Creditors Arrangement Act (CCAA) process, along with three vulture capitalists, one of which was a division of Brookfield Asset Management which bought Stelco following a contrived report which valued its assets at near-nothing and then made a fortune when he sold it to U.S. Steel. (The vulture capitalists made 700 per cent on their investment in a year and a half.) He was a swindler of the first order but that did not stop Canadian official circles from treating him like a saviour of Canadian steel production and steelworkers. (This is the same Brookfield Asset Management of which Mark Carney, currently running for the leadership of the Liberal party, was Chairman and head of "transition investing.")
Canadian
steelworkers in Hamilton, members of United Steelworkers Local 1005,
fully exposed all these scams at the time they were taking place,
including the involvement of officials at both the federal and Ontario
levels. The pay-the-rich scams were endless with the federal and
provincial
governments and courts involved to the hilt.
What it shows is the reality that global oligarchs control the economy to serve their narrow private interests. The lack of control of the working class and people over the economy, which is the sole source sustaining their existence, underscores the key issue facing Canadians when it comes to Trump's threats to make Canada the 51st state: the absence of their own political power.
Democratic renewal to bring the people to power means in part establishing people's control over the economy with new forms that allow this modern necessity to become a reality.
As it stands, the tariffs on U.S. imports of aluminum and steel come into effect as of March 12, 2025. "As of that date, all imports of steel articles and derivative steel articles from Argentina, Australia, Brazil, Canada, EU countries, Japan, Mexico, South Korea, and the United Kingdom shall be subject to the additional ad valorem tariff proclaimed in Proclamation 9705 with respect to steel articles and Proclamation 9980 with respect to derivative steel articles," Trump's most recent Executive Order decrees.[1]
The Globe and Mail reported that Trump told reporters that there would be no exemptions and, referring to Canada, that "We don't need it from another country. As an example, Canada. If we make it in the United States, we don't need it to be made in Canada. We'll have the jobs. That's why Canada should be our 51st state."
Which, as anyone can see, means they do need it from Canada.
United Steelworkers (USW) Canada issued a statement on February 10 very similar to the statement the union issued in 2018. As if everything is currently hunky-dory in the steel and aluminum industries in Canada and Quebec, the statement condemns the tariffs that "threaten thousands of Canadian jobs, disrupt supply chains and undermine decades of economic cooperation."
The statement says that USW National Director for Canada Marty Warren "is calling on the federal government to act quickly and forcefully with immediate counter-tariffs, enhanced worker and industry support and a firm commitment to use Canadian steel and aluminum in public infrastructure projects. Warren also warns that without safeguard measures, Canada could see an influx of cheap steel and aluminum from countries shut out of the U.S. market, further harming domestic industries and Canadian jobs."
Sounding
more sober, USW International President Dave McCall is quoted as
saying: "Canada is not the problem, and these tariffs will only hurt
workers on both sides of the border. ... Instead of reckless trade
wars, we need policies that strengthen manufacturing and protect good
jobs in both
countries."
Such positions accept the premise of the threats and counter-threats which is that the oligarchs who have taken over the reins of power in both Canada and the United States will develop an economy which benefits the people which is not the case and everyone knows it.
U.S. workers know well that Trump does not give a fig about their jobs. Demonstrations are taking place from one end of the U.S. to the other which prove this. So too Canadian steelworkers know well that federal and provincial authorities do not give a fig about their jobs. It is all a scam.
The Canadian Labour Congress responded to Trump's edict about tariffs on steel and aluminum imports saying that these tariffs put tens of thousands of Canadian jobs at risk and that "Canada cannot sit idly by while our workers are treated as bargaining chips in Trump's trade war. Our government must respond with strong, immediate action to defend Canadian industries and the workers who keep them running," said Bea Bruske, President of the Canadian Labour Congress.
She did not say what kind of bargaining chips she is telling her government to use but only that "the actions demanded are retaliatory measures, investments in affected industries and direct support for impacted workers." Needless to say, such investments and direct support are exactly what put us in this situation in the first place.
None of these respondents bother to explain to Canadians what is involved in the production of steel or aluminum and how precisely issues pose themselves which would show Canada's role in the extraction and production process, what uses Canada has for these resources and products and what viable alternatives exist. As has always been the case, Canada has everything it needs to develop a sustainable economy if the workers set its direction by not permitting Canada's integration into the U.S. war machine.
Notes
1. Relevant quotes from Trump's Executive Order:
"Volumes from both Canada and Mexico increased overall, from 7.77 million metric tons in 2020 to 9.14 million metric tons in 2024. Imports have also surged in excess of historical norms of trade across numerous key product lines, such as long reinforcing bars, which have experienced import increases of 1,678 per cent from Mexico and 564 per cent from Canada. These surges have occurred while authorities in those countries have supported otherwise uncompetitive producers with subsidies and other interventions that have exacerbated the global excess capacity crisis.
[...]
"I determine that these developments and modifications to the tariffs announced in Proclamation 9705 have undermined the program's national security objectives by preventing the domestic steel industry from achieving sustained production capacity utilization of at least 80 per cent, as determined necessary in the Secretary's report of January 11, 2018.
[...]
"Thus, I have determined that steel articles imports from these countries threaten to impair the national security, and I have decided that it is necessary to terminate these arrangements as of March 12, 2025. As of that date, all imports of steel articles and derivative steel articles from Argentina, Australia, Brazil, Canada, EU countries, Japan, Mexico, South Korea, and the United Kingdom shall be subject to the additional ad valorem tariff proclaimed in Proclamation 9705 with respect to steel articles and Proclamation 9980 with respect to derivative steel articles."
2. The U.S. Department of Agriculture's Economic Research Service (ERS) issued a report on the impact of retaliatory tariffs by State and commodity in 2018 which, besides other things, estimated the direct export losses associated with the trade conflict. The ERS points out:
"In 2018, the United States imposed Section 232 tariffs on steel and aluminum imports from major trading partners and separately Section 301 tariffs on a broad range of imports from China. In response to these actions, six trading partners — Canada, China, the European Union, India, Mexico, and Turkey — responded with retaliatory tariffs on a range of U.S. agricultural exports, including agricultural and food products. The agricultural products targeted for retaliation were valued at $30.4 billion in 2017, with individual product lines experiencing tariff increases ranging from 2 to 140 per cent."
The report which provides a detailed look at the negative impact on direct U.S. export losses is available here.
3. Roughly a quarter of all steel used in the United States is imported.
Canada, Brazil and Mexico are the top three suppliers of steel to the United States. Between March 2024 and January 2025, they provided about half (49 per cent) of steel imports for domestic consumption, according to the International Trade Administration
4. The U.S. Congressional Research Service provides a comprehensive report on U.S. National Security Concerns when it comes to imports of aluminum.
As secondary aluminum is derived from recycled products or scrap, it often contains significant impurities. This makes it unsuitable for uses that require high and consistent quality. Manufacturers of components used in electronics and aerospace manufacturing often favour primary aluminum that meets specified purity standards. Many defence-related products must comply with particularly high purity standards. Specialty alloys and materials used in wrought aluminum products often have enhanced mechanical properties, such as heightened electrical conductivity and corrosion resistance, which are greatly preferred for aerospace and defense applications. However, military demand alone is insufficient to support domestic production of high-purity primary aluminum alloys. According to the Department of Defense (DOD), U.S. military requirements for aluminum represent approximately 3 per cent of annual domestic production.
The greatest aluminum-related security concern regarding defense requirements appears to be the availability of specific high-purity aluminum alloys, which can be derived from primary aluminum. The supply of high-purity aluminum is important to the production of high-performance aluminum alloys used in aerospace and defense products. In addition, aluminum alloys are one of several energetic materials used in missile and munition systems, according to DOD.61.
One active U.S. smelter produces aluminum of sufficient purity for use in military aircraft, as well as in the lightweight armour plating found in many defense ground and weapon systems. Century's Hawesville, KY, smelter produces primary aluminum with a purity of 99.9 per cent compared with standard-purity aluminum of 99.7 per cent. Standard ingots can undergo further electrolysis processing, known as the Hoopes process, to reach an "ultra" purity grade of up to 99.99 per cent. Century's Hawesville smelter produced 172,000 tons of primary aluminum in 2021, with the large majority going to the commercial aerospace and electrical conductor markets. With respect to defense requirements, this smelter is a major supplier of high-purity aluminum to downstream producers, including Arconic, Constellium, and Kaiser.
These firms use high-purity alloys and materials to produce aluminum products for an array of advanced aerospace and defense applications. In June 2022, Century announced that it would temporarily idle its high-purity smelter for up to a year due to rising energy prices. Downstream producer Arconic has the capability to produce high-purity aluminum from a standard ingot using a specific fractionalization crystallization process. Canadian downstream producer Nature Alu manufactures aluminum ingots with an ultra-purity grade of 99.99 per cent through a proprietary technology. The company states that it is the only North American manufacturer of high-purity aluminum that supplies the international market. It is unclear whether the United States imports materials from this firm for use in military applications.
The Department of Homeland Security has designated 16 critical infrastructure sectors in the United States. One of these, "critical manufacturing," encompasses domestic production of primary metals, including aluminum, among other materials. The Trump Administration's Section 232 aluminum report asserted that nearly all of the designated critical infrastructure sectors rely on aluminum products to accomplish their principal missions. Separately, the aluminum industry's broadest trade group has pushed for the designation of the aluminum industry as an "essential industry" to allow continuation of operations in the event of a federal emergency, such as was declared during the COVID-19 pandemic.
For the full Congressional Report which explains how much aluminum the U.S. imports, and the production process click here.
U.S.- Canada Alliance in Energy and Minerals
Government of Canada Proposes Increasing
Sellout
to U.S.
Leading the charge of Canadian officials going to the U.S. is Minister of Energy and Natural Resources Jonathan Wilkinson. His assignment is to lobby against tariffs by offering more ways that Canada can support the U.S. war machine, U.S. ambitions for world hegemony and isolate Russia and China.
On February 4, the day that tariffs were to be imposed, Wilkinson addressed the Atlantic Council in Washington DC. Founded in 1961 at the height of the Cold War to promote Atlanticism, the Atlantic Council pitches itself as "a nonpartisan organization that galvanizes U.S. global leadership and engagement in partnership with allies and partners" -- a description which belies its purpose to make sure the U.S. is "indispensable nation."
Wilkinson
pitched a sell-out definition of collaboration as a means
to move the conversation from tariffs to "prosperity and security,"
which, according to the Government of Canada, offers "a win-win."
According to media reports, Wilkinson said that beyond friendship and
our economic
partnership, "we have long been steadfast partners on the world stage.
That is even more important right now, given the increasingly
aggressive behaviour of international actors like China."
The phrase "steadfast partners on the world stage" is a euphemism for Canada's role as a loyal subaltern. There is no greater proof of this than the manner in which Canada has accepted Donald Trump's accusations and agenda and is jumping through hoops to prove its compliance.
According to the news reports, Wilkinson "acknowledged the Administration's concerns about fentanyl and 'illegal migrants' crossing the border while saying that this is minimal from Canada," adding "One illegal crossing and one pound of fentanyl crossing the border is too much. In this regard, we agree very much with President Trump."
Wilkinson listed elements of Canada's enhanced border plan as well as the additional measures announced on February 3: "Canada will be appointing a Fentanyl Czar and will list cartels as terrorists. Together, we will launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering -- ensuring 24/7 eyes remain on the border. And Prime Minister Trudeau also signed a new intelligence directive on organized crime and fentanyl, backed with an additional $200 million."
With regard to "our economic partnership" he said that it is the envy of the world and "Our respective economies are so integrated that I would say the partnership is effectively 'hardwired.'" He then got to the main reason for his mission. He said that "there is no area where the integrated nature of our economies is clearer than in energy and key resources, such as critical minerals" after which he proceeded to give examples –- transmission of low-cost hydroelectricity to U.S. states, an integrated pipeline system that supplies heavy crude to U.S. refineries allowing the U.S. to export its light crude to countries around the world "creating additional profits for Americans companies but also creating additional tools to be used in the context of geopolitics," potash and uranium which helps the U.S. avoid purchasing it from countries like Belarus and Russia, and critical minerals for American economic sectors, including defence, the alternative source being China.
Wilkinson argued that when energy is excluded the U.S. actually has a trade surplus with Canada which gives the U.S. an advantage,"by leveraging Canada's resource abundance to obtain low-cost and secure energy and minerals that the American economy requires -- especially if one wishes to achieve energy affordability and dominance" and that tariffs would harm both countries so tariffs on Canada, "a country that shares your goals and values more than any other country in the world" would increase costs to Americans and that "As a sovereign, democratic nation that must protect its own national interests, the unwarranted imposition of tariffs on Canada would necessitate a response."
Everyone agrees that Trump's threats to impose tariffs is not reasonable but without analyzing what the Trump administration is up to, what is the aim of repeating over and over again that the threats are unreasonable, except to propose schemes which will in deeds accomplish what Trump is after -- the complete takeover of Canada by making Canadians pay for the costs incurred.
What else can be made of Wilkinson's proposal that Canada and the U.S., as an alternative to tariffs and their damage, "Build upon current success by developing a U.S.-Canada alliance in energy and minerals." He gave examples:
-"joint investment in a project that will enable greater germanium supply so the U.S. does not have to buy from China." [Germanium is a metal used in semiconductors. It is used in fibre-optic networks, infrared vision systems and solar panels. Canada's Vancouver-based Teck produces germanium at its Trail smelter in British Columbia's Kootenay region as a byproduct of zinc mining in Alaska. Canada has a long-established vibrant semi-conductor industry but how to develop that independent of U.S. hegemony does not seem to be Wilkinson's priority.][1]
- "collaboration on rare earth processing, again to reduce reliance on China. Currently 100 per cent of the product of the one rare earths mine in the U.S. is sent to China for processing"
- "build a complete North American nuclear fuel cycle so as to rely less on Russia and enhance continental security, important for small modular reactors"
- "on energy, Canada can enhance the flow of Canadian crude from Alberta 'to assist with the Administration's goal of energy dominance.'"
A statement from Natural Resources Canada issued on February 6 says that after meeting the Atlantic Council Wilkinson made the same pitch in meetings with Senators John Hoeven of North Dakota and Chris Coons of Deleware and Representative Eric Swalwell, with the CEO of the American Fuel and Petrochemical Manufacturers, CEO of the Nuclear Energy Institute and CEO of the Independent Petroleum Association of America, and 'major players' in the North American energy industry including Shell, BP, Enbridge, TC Energy, Cenovus, Phillips 66, PBF Energy, Plains All America and Valero.
At the same time Defence Minister Bill Blair and Innovation, Science and Industry Minister François-Philippe Champagne met with industry leaders "to discuss increased strategic collaboration in defence and aerospace procurement in the defence of North America."
They also met with members of Congress, stressing that Canada would be spending a further $8.1 billion on defence over the next five years and $73 billion over the next 20 years, as well as the NORAD Modernization Plan announced in June 2022 in which $38 billion will be invested.
On February 6 Natural Resources Canada announced up to $43.5 million in investments in Quebec's critical minerals sector, "to advance infrastructure to better develop, supply and research critical minerals in Quebec."
Projects include up to $20 million to Critical Elements Lithium Corporation in James Bay for an electrical station and relocation of a transmission line to service its Rose-Lithium-Tantalum Mining Project in Eeyou Istchee James Bay; up to $1.1 million to Dumont Nickel for a feasibility study on connecting its Dumont nickel and cobalt project to the Hydro-Quebec grid; up to $1.3 million to Sayona Nord Inc for planning for a 55-km transmission line to connect their Moblan lithium project to the grid; up to $13.5 million to Eskan Company for a feasibility study for a possible extension of the Renard Mine access road by 87 km toward lithium-based minerals projects located in Eeyou Istchee James Bay; up to $1.3 million to Cbay Minerals Inc in Chibougamau for pre-construction work for roads and powerlines; up to $2.6 million for Commerce Resources Corp in Juujjuaq for pre-construction work on a 175 km road connecting the Ashram project for rare earth elements and fluorspar to a landing point on the Koksoak River; up to $3.7 million to COALIA in Thetford Mines for a pilot project for the extraction and purification of lithium, to validate the robustness of the process before its industrialization.
Note
1. Canadian Semiconductor Industry, Government of Canada
Premiers' Mission to U.S.
Disgraceful Performance Pitches Deeper Integration into U.S. War Economy
On February 12 "for the first time ever," all 13 of Canada's Premiers visited Washington, DC as part of a joint mission "aimed at strengthening Canada-U.S. relations," according to the website of the Council of the Federation. Current Council chair Ontario Premier Doug Ford, went a day earlier to "lead the group as they undertake a series of meetings and events in the U.S. capital."
The Council says that the aim of their meetings with members of the Trump administration, members of Congress and business leaders, is "to advocate for maintaining strong Canada-U.S. relations by addressing shared issues such as jobs and the economy, energy, critical mineral supply chains, border security and immigration."
On
February 11, Ford spoke to the U.S. Chamber of Commerce and then hosted
a joint reception with Republican Senator Kevin Cramer, the junior
Senator for North Dakota since 2019. Cramer's net worth is cited by
various sources as at least $500 million.
Reports indicate that some premiers will also travel to Washington, DC during the annual meeting of the National Governors Association on February 20-22.
News agencies reported that Ford promoted his "Fortress Am-Can" to the U.S. Chamber of Commerce, pitching "the strategic alliance between Canada and the U.S., including an integrated energy and electricity grid."
In an election speech on February 10 Ford said that if his cartel party is re-elected they would ban the use of Chinese parts from all future energy procurement, as well as bar Chinese state-owned enterprises from buying or taking equity in any Ontario government-funded energy and critical mineral projects, or any major infrastructure assets. He said that China is the biggest threat to North America's economic success. His position is that Canada has to convince the U.S. that "U.S.-Canadian economic cooperation is the best way to meet trade threats from China" and that "Ontario is taking action to secure our border and delivering results."
Premiers are split on how best to respond to Trump's tariffs and threats to annex Canada but are united in their mission to push even deeper integration of Canada into the U.S. economy. Their belief is that if only the U.S. understands, then everything can proceed smoothly.
BC Premier David Eby says it is important that U.S. officials understand what he called "our tightly linked economies" and they must be convinced that the proposed tariffs would be "just mutually assured damage." Canadians have yet to find out what he is offering them which they might find convincing.
Several premiers, including Ford and Alberta Premier Danielle Smith, have also been appearing on U.S. media and engaging with governors and other U.S. officials. Smith highlights the significant role Alberta energy exports play in helping the U.S.
All have agreed with the federal government's falling in line with Trump's demands to militarize the border, with some provinces even sending their own forces to patrol the border.
Newfoundland and Labrador Premier Andrew Furey expressed the hope that "I do think diplomacy will win the day and the relationship between Canada and the United States is stronger than one president."
The Premiers are in Washington not to advance the demands of the Canadian people for an independent and sovereign economy which is not subordinate to the U.S. or any other country, but to grovel and lobby for "special consideration" as the greatest of allies which can be counted on to supply the U.S. with what it needs. It is undignified and a sign of desperation because they refuse to recognize the need for a new direction for the economy, a nation-building project that has as its foundation the needs of the people of Canada and Quebec not the demands of narrow private interests in control in the U.S. and Canada.
(To access articles individually click on the black headline.)
Website: www.cpcml.ca • Email: editor@cpcml.ca