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New tariffs: The talk of the town

Big business is always in a state of flux.Raw material closed die

At CanForge, we are well aware of this fact!

We’ve been around in Niagara for more than 100 years, producing forged metal products with applications in industry, especially as it applies to the steel and iron manufacturing industry.

During that time, we’ve seen manufacturing processes change; delivery methods alter; industrial applications come and go, and government tariffs rise and fall.

Despite recent changes to the steel industry brought about by trade agreements with the United States and Mexico, CanForge’s aim is to remain rooted in our Niagara community – employing local team members and supporting families in all 12 municipalities.

While the newly minted USMCA (United States-Mexico-Canada Agreement) trade deal replaces NAFTA (North American Free Trade Agreement), it doesn’t lift recently added tariffs to steel imposed on Canada and Mexico by President Donald Trump’s administration.

These tariffs, now up to 25 per cent, affect steel products made in other countries, like Canada or Mexico, and shipped into the United States. Aluminum products being imported will be hit with a 10 per cent tariff.

If the tariff issue can’t be resolved by the signing parties before USMCA is inked toward the end of November, tariffs will remain in place for the foreseeable future … although, according to recent stories in the media, all parties agree the issue needs revisiting.

Both Canada and Mexico applied retaliatory tariffs to the U.S. Petty? Maybe. But perhaps it will make all parties come to the table for discussion sooner, rather than later.

A trickle-down effect is likely to occur, with higher steel and aluminum product prices being eventually passed on to consumers. Directly affected might be the auto industry, for example, or the food industry as it relates to aluminum used to can food and beverages.

Is this the end of CanForge’s business as we know it?

Not at all.

Not only have we weathered this type of change to business in the past, we are constantly evolving our own business model to bring new applications into play.

Markets we service include the aerospace industry; road and rail transportation industry; defence applications, Oil and Gas and the power generation industry. That includes recent refurbishment of Ontario Power Generation (OPG) and Bruce Power nuclear sites. 

Some of our products find their way into jet engines; nuclear reactors; land-based turbines; mining equipment; oil pipeline components; off-road equipment and pressure vessels.

With all CanForge’s experience, our strength lies in our ability to keep up with industry needs; to offer competitive pricing and quality forgings produced domestically to companies within Canada’s borders.

CanForge’s Niagara family includes two plants and our company head office in the city of Welland, with sales staff and contacts scattered throughout the U.S. and Europe. We do our best to honour all our loyal family of clients with excellent service from the heart of beautiful Niagara. 

New tariffs on the steel industry may be the talk of the town, but at CanForge, we’re forging ahead with ways to cope, and to honour our clients with our usual top-level quality of product and service.


Do you have questions or comments? Reach CanForge by accessing our Contact Us website page, or call our head office at 905-735-1220, or toll-free at 1-800-263-0440.


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