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U.S.–Canada Steel Tariff Dispute Hits Twin Border Cities

9/9/2026, 8:31:41 AM

Trade Tariffs Escalate Between the United States and Canada

In response to U.S. steel measures, Canada imposed retaliatory tariffs that have risen to 50 percent on American steel. The rates were originally set at 25 percent early in the Trump administration and were doubled last summer, according to Mayor Matthew Shoemaker of Sault Ste. Marie, Ontario.

Background: Earlier Tariffs and the Local Steel Economy

During the first Trump presidency, a 25 percent U.S. steel tariff strained Algoma Steel, the primary employer in Sault Ontario. Shoemaker recalled that the plant reported losses of roughly $1 million per day under those duties. The community’s reliance on steel manufacturing made it especially vulnerable when the tariffs were increased to 50 percent.

Economic Impact on the Twin Saults

The heightened duties have produced “real economic impact” in the region, including job losses at Algoma Steel and a sharp decline in cross-border commerce. Bridge traffic is down about 30 percent from typical levels, and local businesses on the Michigan side report fewer Canadian shoppers, fewer vacationers, and a near-cessation of cross-border golfing during the summer. Because the Canadian city is roughly five times larger than its U.S. counterpart, the downturn in Sault Ontario directly depresses retail, restaurant, and coffee-shop revenues in Sault Michigan.

Official Responses from Local Leaders

Mayor Shoemaker said residents have grown weary of the insults directed at Canadian leaders, echoing the frustration expressed by Ontario Premier Doug Ford. Shoemaker warned that without protective measures, the region could lose its capacity to sustain steel production altogether.

Outlook

Negotiations to reduce sector-specific tariffs have collapsed, leaving the twin cities without immediate relief. As the anniversary of September 11 approaches—a date marked by historic Canadian support for the United States—local sentiment remains focused on economic survival rather than diplomatic symbolism. The community continues to “vote with their wallets,” signaling sustained pressure on policymakers in Washington and Ottawa.