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Opinion: Ottawa's steel tariffs kneecap Alberta construction Alberta has an economy that consistently leads the nation and is a magnet for young Canadians seeking opportunity. Unfortunately, we have a federal government that seemingly has been focused on holding Alberta back rather than moving it forward. In response to the trade war unleashed by the Trump administration, there have been more references to “Team Canada” than one can count. In meeting after meeting, the prime minister and premiers issue statements about removing internal trade barriers, unlocking Canada’s vast energy resources, harnessing the potential of our natural resources and expanding markets abroad. But when it really counts, Team Canada devolves into long-held narratives and policies that have penalized Alberta for decades. Consider the federal government’s steel tariffs and quotas that serve central Canadian steel manufacturers at a heavy cost to Alberta. Call them “retaliatory tariffs” if you want, but the Carney government’s steel tariff-rate quotas apply not just to the United States, but all of Canada’s other trading partners, whether free-trade agreement partners or not. These measures mean supply shortages, high prices, taxes, and paperwork imposed on Canadians, raising costs and delaying projects. It’s a self-inflicted economic wound, courtesy of the federal government. And because Alberta and B.C. rely heavily on imported steel for rebar, the cost of a policy that serves a handful of steel mills in Ontario and Quebec lands squarely on western Canadian builders and taxpayers. Ottawa’s steel tariffs assist a small cluster of mostly foreign-owned central Canadian producers while kneecapping construction markets here. Edmonton is the location of one steel manufacturer, AltaSteel, that provides about 15 per cent of the rebar required by Alberta and B.C. Imported steel makes up the difference. In 2024, Canada imported 581,430 metric tonnes of rebar; the vast majority of this landed in Western Canada. One B.C. and Alberta company imported nearly 100,000 metric tonnes alone after repeated attempts to buy from Canadian mills went nowhere. Of four Central Canada steel mills contacted, one doesn’t make the rebar required, and three failed to provide prices. They aren’t serious about serving the western market. But even if they wanted to, the cost of freight is prohibitive. Shipping heavy rebar by rail from Ontario to Vancouver costs about $200 per tonne. By ocean freighter from Asia? $35. This saga has been playing out for decades: The construction industry in Western Canada needs to import steel produced in another country; eastern Canadian mills lodge a complaint. Western Canadian contractors plead their case to Ottawa, and Ottawa imposes a tariff to “protect” eastern Canadian mills to the delight of their foreign shareholders. What western Canadian suppliers want is a regional exemption that reflects the reality of Canadian geography and the construction market in this region. In an era where affordability is key to building everything from housing to hospitals, how this is lost on policymakers in Ottawa is confounding. The Carney government’s limits and added costs on the amount of steel used for rebar that can be imported from any country makes no sense for Alberta and B.C. The result will be further delays and cost overruns. Rebar is among the first trades on construction jobsites. When it stalls, whole schedules slip. Right now, shortages and price spikes threaten everything from the Capital Line South LRT Extension to water and wastewater upgrades like the Carstairs Reservoir, school builds in Airdrie, Okotoks, Calgary, Chestermere and elsewhere, and public safety projects like the Leduc Fire Hall. These aren’t hypotheticals — they’re real contracts here in Alberta, needing thousands of tons of steel over the next 18 months. One company alone has $7.6 million in Alberta contracts to supply 3,466 metric tonnes of rebar needed for public infrastructure projects. A 50-per-cent cost spike to cover tariffs — plus extra costs from delays — lands directly on taxpayers. The Liberal government has demonstrated a lack of understanding of how the steel market operates in Canada, leading us to conclude that Ottawa has been captured by central Canadian steel interests. It’s time for Prime Minister Mark Carney to bring in western Canadian fabricators and contractors — the people who buy and place this steel in this market — and design rules that reflect the needs of all of Canada. We urgently need a regional exemption from the Carney government’s steel tariffs. Lower the barriers, let western builders access steel at market prices, and we’ll do what we do best: Get shovels in the ground and projects delivered for Alberta families and communities — on time and on budget. Mike Martens is president of the Independent Contractors and Businesses Association (ICBA) Alberta.

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29.08.2025
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