Canada’s tool and mould makers are feeling the impact of new U.S. tariffs, catching them off guard with unexpected tax increases. Unlike previous trade war adjustments by U.S. President Donald Trump, these recent tariff changes were announced quietly by the White House on April 2. The adjustments to tariffs on steel, aluminum, and copper imports under Section 232 of the U.S. Trade Expansion Act now apply to the full customs value of imports, not just the metal components.
One of the changes includes a flat 50% levy on the full value of articles made mostly of aluminum, steel, or copper, such as steel coils and aluminum sheet, citing them as a “national-security threat.”
Jonathon Azzopardi, the president and CEO of Laval Tool & Mould Ltd., located in Maidstone, Ont., expressed that the tariffs directly target Canada’s supply chain. He likened it to a deliberate attack on the industry, similar to actions taken against the automotive sector.
Azzopardi highlighted that the U.S. approach poses a significant threat to the North American mould maker industry, estimating potential losses of up to $5 million annually for his company. He emphasized the need for immediate action to address the adverse impact of the tariffs.
Nicole Vlanich, the executive director of the Canadian Association of Mold Makers (CAMM), emphasized the sudden and significant impact of the tariff changes on businesses, with tariffs now applicable to the full value of products each time they cross the border.
Vlanich highlighted the challenges faced by the industry due to the integrated nature of trade with the U.S., stressing the need for urgent solutions to mitigate the financial strain on companies.
