‘We were pulling booze off the shelves at 25 per cent,’ Mayor Matthew Shoemaker said

Sault Ste. Marie’s mayor is urging the federal government to keep pressing the United States as talks reportedly move toward cutting steel tariffs on Canada from 50 per cent to 25 per cent.

The negotiations are not yet final, but early reporting suggests tariffs on Canadian steel will be reduced to 25 per cent.

Reached by phone today, Mayor Matthew Shoemaker said he hopes the federal government continues pressing for additional relief when it comes to steel tariffs.

“It’s definitely a step in the right direction, but I don’t think that it gets us to a point where we can be sure of the sustainability of the industry in Canada,” Shoemaker said. 

“If the rumours are true that the 50-per-cent tariff is going to be replaced with a 25-per-cent tariff, it really is a validation, frankly, and a victory for the American negotiating strategy because we were pulling booze off the shelves at 25 per cent.”

Shoemaker said a 25-per-cent steel tariff as an end goal for Canada does not sit well with him.

He said when steel tariffs were at 25 per cent, it meant Algoma Steel was losing an estimated $1 million per day.

“The federal and provincial governments extended liquidity support for [Algoma Steel] and those types of supports are going to need to continue if we accept a 25-per-cent tariff, because there will be a concern over the continued viability of the mill at that rate,” said Shoemaker.

He said he hopes the 25 per cent figure that is being floated around is an interim number.

“At 25 per cent we’re going to be advocating extremely strongly to the federal government that this cannot be the final outcome of a negotiation,” said Shoemaker.

He said the relationship between Sault Ste. Marie, Ont. and its neighbour across the St. Marys River remains strong.

“They have advocated to the American federal government for a return to normal relationships, and that is as much as we can ask for,” Shoemaker said.

This week U.S. President Donald Trump said he would delay his new tariffs on Canada for three days.

“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three-day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump said in the post.

— with files from The Canadian Press