P.E.I. steel fabricator concerned about potential impact of U.S. steel tariffs

Executives at MacDougall Steel Erectors in Borden-Carelton say it's too early to tell what U.S. President Donald Trump's tariffs could mean for their business, and they're waiting for more details.

Last week, Trump announced a 25 per cent tariff on any steel imported into the U.S. including from Canada.

• U.S. won't exclude Canada from steel, aluminum tariffs, White House says

"We never really thought maybe it would quite come this far," said MacDougall Steele ErectorsCFOKirk MacKinnon.

U.S. a key market

MacDougall has been increasing its exports to the U.S.after the downturn in the Canadian oil industry.

"The idea was going forward that that would be one of our key markets," MacKinnonsaid.

We're still wonderingexactlywhat the tariff will apply to.- Kirk MacKinnon

MacKinnonsays he and his co-managers didn't think Trump's "made in America"policies would go this far, and theywere worried when they first hear himannounce plans for steel and aluminum tariffs. But MacKinnon said they're trying not to have a "sky isfalling" outlook.

"It is significant, but at the end of the day, we just don't know enough details," MacKinnon said.

Much of the steel used in fabrication at the MacDougall plant originates in the U.S. And MacKinnonsaid he wonders how that will impact the application of tariffsto their products.

"We're still wondering is it based on raw material, or fabricated goods, or justexactlywhat the tariff will apply to," he said.

• MORE P.E.I. NEWS |Charlottetown airport to get more taxis, but fares will increase
• MORE P.E.I. NEWS |P.E.I. Legislature struggling to find office space in 'very cramped' Coles building