Steel tariffs could impact B.C. projects like Pattullo Bridge, Surrey LRT

Steel is just one of many items on a long list of U.S. products subject to new tariffs and it could impact infrastructure projects in Metro Vancouver, warns the Canadian Institute of Steel Construction.

While Canada exports 90 per cent of its steel to the United States, there are some kinds of steel that Canada brings in from the U.S. such as weathering steel, heavier plate steel and reinforcing steelused in concrete.

"If we can't get supply, the projects get delayed and the costs go up considerably and the consumer ...being taxpayers, will ultimately be harmed," said Ed Whalen, the president and CEO of the steel construction institute.

U.S. steel issubject to a 25 per cent tariffas of July 1.

"The overall costs of infrastructure projects will go up and how much that increases will depend on the density and the tonnage [of steel] that goes into a project," Whalen told Stephen Quinn, the host of CBC's The Early Edition.

That means projects like the Pattullo Bridge replacement, the LRT in Surrey and Kicking Horse Pass project in eastern B.C. could be affected.

Concerns about lack of supply

Whalen'smain concern is a lack of supply because Canadian steel mills do not produce enough of those kinds of metals to fuel all the projects currently underway.

He said the industry generally supports the Canadian government's response of looking at tariffs for the rest of the world, to prevent subsidizing of steelbut would like to see tariffs imposed selectively.

"Rather than doing it on a broad scale where everything gets tariffed, what we've been asking the government is to selectively tariff those that are dumping illegally into Canada and allow other products to come in, because we just won'thave enough supply," he said.

He said the most pressing concern is for the future of B.C.'s construction and infrastructure.

"We've been focusing on the mills but more importantly, certainly from my perspective, is that if you don't have customers for the mill, you don't have a mill," he said.

"There is a strong and vibrant steel industry in B.C., and we are very concerned that there may be a slowdown of infrastructure projects and that will ultimately hurt downstream."

With files from The Early Edition.

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