Canadian trade groups and steel producers say tariffs are already harming cross‑border commerce

Canadian business and steel industry representatives described rapid business sentiment shifts and concrete industry impacts from the recent tariff actions.

Dan Kelly, president of the Canadian Federation of Independent Business, told lawmakers that CFIB polling shows a steep drop in small‑business optimism since the U.S. tariff announcements. Kelly said 16% of CFIB members export directly to the United States while 49% import directly from the United States, and that nearly one in five members had already experienced cancellations or orders put on hold. He said many Canadian firms are seeking alternative markets and sources of supply, and that almost half of CFIB respondents now consider the U.S. an unreliable trade partner.

Francois Desmarie of the Canadian Steel Producers Association described the North American steel trade as highly integrated and warned the committees that Section 232 tariffs on steel are already prompting layoffs, rising steel prices and risks of diversion that could increase offshore steel penetration in Canada. Desmarie said Canadian producers operate many U.S. facilities and that roughly 25% of U.S. steel imports historically came from Canada, with the two‑way steel trade worth an estimated $12–13 billion annually.

Both witnesses urged governments to restore predictable rules and to use joint approaches to address global overcapacity rather than impose broad, unilateral measures. Committee members thanked the Canadian delegates and asked state staff to maintain subnational diplomacy and to share industry data with federal delegation offices working on legislative responses.