SASKATOON, Sask. — Supreme Steel president David Fritz said tariffs imposed by the U.S. on Canadian steel have forced the company to revamp its supply chains and pivot more aggressively to local markets, as its once-significant market south of the border has slowly faded due to trade tensions between the two countries.
Fritz, who has been in the steel industry for 15 years, said the company has historically benefited from a strong relationship with U.S. companies, both buying raw steel materials from suppliers and shipping fabricated structural steel south.
“Through those 15 years, we've always had a good working relationship with companies in the U.S. We've enjoyed free and fair trade with the U.S. for a long time. We've shipped to the U.S. in the past. It's in the millions, tens of millions of dollars,” said Fritz, who joined Saskatchewan NDP Leader Carla Beck and trade and export development shadow minister Kim Breckner at a media event on Thursday, Sept. 10.
He said the company previously shipped significant amounts of fabricated steel into the U.S., but tariffs have made that market increasingly difficult to access. This year alone, he added, it has not shipped steel into the U.S., which was a significant change in its operations.
Fritz added that Supreme Steel, with the U.S. market closed for the time being, has been looking for more opportunities within Canada, particularly as major projects continue to emerge in Saskatchewan. He also urged governments — federal and provincial — to invest in infrastructure projects that would provide economic benefits, so that Canadian companies and workers can secure the contracts.
“I think the good news is that there is a lot of work coming available or available in Saskatchewan. There is enough work here to support the steel industry, but the important thing is that steel companies in Saskatchewan are fabricating it,” said Fritz.
“It's great to have the projects, and we're seeing federal funds injected to make sure projects go ahead. But it only matters if it's done by Canadian workers and for Saskatchewan people that Saskatchewan workers do it.”
He said Supreme Steel responded by becoming more aggressive in the domestic market, as the tariff environment has created a new challenge for companies across Canada competing for the same projects. However, he added that theirs is an adaptable, agile company that can shift and pivot quickly.
Fritz said the effects of tariffs have not been evenly distributed across Canada, with companies in Eastern Canada previously relying more heavily on exports to the U.S. As those markets have become harder to access, more companies are now competing for domestic work.
He added that tariffs are also increasing input costs throughout the steel industry, creating challenges for projects regardless of where the steel is sourced. However, Supreme Steel remains resilient and focused on finding new revenue streams, but a return to free and fair trade with the United States would provide the clearest path forward for the industry.
“You can buy from the U.S. and pay a large amount of tariff, or you can import from overseas and deal with long, long lead times. Either way, projects are affected, so there is an impact no matter what, without free and fair trade,” said Fritz.
“You can gear up and get new technology, but if there's no work to do, it really doesn't help you. You need the projects, then you need to secure those contracts domestically, and then execute, of course. The best thing absolutely is a deal between Canada and the U.S., but it's not in place now. As a business, we're forced to adapt. We're not just okay doing nothing,” Fritz said.
Caught in the middle
Beck said Saskatchewan’s steel industry and workers are being caught in the middle of the escalating Canada-U.S. trade war, despite not being responsible for the dispute, and called on the provincial government to take action and put out a solid plan to protect workers and businesses.
Beck said companies such as Supreme Steel are facing pressure from both sides of the trade relationship. The company exports fabricated steel to the U.S., while also relying on some U.S. steel products that are not readily available in Canada.
“We're here today because Saskatchewan steel, the people who work in steel and the manufacturers are caught in the middle of a trade war that they didn't start,” said Beck, adding that the industry provides good Saskatchewan jobs and workers deserve to know the provincial government has a plan to protect those jobs and strengthen the sector.
She said Supreme Steel is among those exposed because it exports fabricated steel to the U.S. while also relying on some U.S. steel products that are not available in Canada. About 25 per cent of the company’s revenue comes from the U.S. market, so higher tariffs could disrupt supply chains and raise input costs.
Beck criticized Premier Scott Moe for what she described as downplaying the trade war's impact on Saskatchewan businesses and called on the government to recall the legislature and work with other parties on measures to support workers and businesses, including a job strategy, stronger domestic supply chains and efforts to diversify export markets.
“These are very real consequences here at home for Saskatchewan businesses, for investment and, importantly, for Saskatchewan workers and their families. You can't just tell Saskatchewan people that things are going to get rough. He needs to tell workers and businesses what his government is going to do to help them weather the storm,” said Beck.
Beck also urged the provincial government to prioritize Saskatchewan and Canadian companies in government procurement, saying major construction projects in the province present an opportunity to support local manufacturers.
“Let's make sure that we are getting full benefit from Saskatchewan companies like this, and right across this province, to continue to support them. They do everything they can to pivot, to continue to provide good jobs here in Saskatchewan. Let's support them through this troubling time,” she said.
Little impact
The provincial government, in an earlier statement, said the U.S.’ latest round of tariffs will have minimal net impact on Saskatchewan. Duties on some Saskatchewan exports, like wooden furniture and honey, have increased, while others, such as salt and electrical panels, have been removed.
“About 94 per cent of Saskatchewan exports to the U.S. remain tariff-free. However, some Saskatchewan businesses and workers have been disproportionately affected, facing market disruptions, higher costs and lost opportunities through no fault of their own,” said the government’s statement.
The government added that it will continue to work alongside affected businesses as it advocates for Saskatchewan's interests, since its goal should be 100 per cent tariff-free exports, as duties hurt businesses, workers and families on both sides of the border.
“Our government will keep our economy strong and steady by expanding our export markets to other countries and working to restore free and fair trade with our largest trading partner, the U.S.,” said the government.
