I’ve spent the past week talking with industry leaders and government officials about what’s quickly becoming one of the most pressing concerns for our regional economy. The proposed U.S. tariffs on Canadian aluminum and steel aren’t just abstract policy – they represent real challenges for Ottawa’s manufacturing sector and the thousands of families depending on stable employment.
Foreign Affairs Minister Mélanie Joly confirmed yesterday that Ottawa is preparing a financial support package for Rio Tinto, one of Canada’s largest metals producers with significant operations affecting our region’s supply chain. This comes as President-elect Donald Trump has doubled down on his campaign promise to impose tariffs of at least 10 percent on all Canadian metals entering the United States.
“We’re working closely with industry partners to ensure liquidity and stability during this uncertain period,” Joly told reporters on Parliament Hill. “This isn’t just about one company – it’s about protecting Canadian jobs and manufacturing capabilities.”
The potential impact locally cannot be overstated. Three manufacturers in Ottawa’s east end that rely on aluminum inputs have already expressed concerns about possible layoffs if material costs surge. David Nakamura, operations director at Eastway Precision, which employs 78 workers, shared his perspective with me during a tour of their facility.
“We’re caught in the middle of a situation we didn’t create,” Nakamura explained while showing me their production floor. “Our margins are already tight, and we can’t simply pass these costs to our customers who have other options.”
The federal support package reportedly includes short-term liquidity measures, export development assistance, and potential tax deferrals designed to help companies weather the immediate shock while longer-term trade negotiations continue.
What makes this situation particularly challenging is the integrated nature of North American supply chains. Statistics Canada data shows approximately 87% of Canadian aluminum exports go to the U.S. market, with many products crossing the border multiple times before reaching consumers.
Ottawa-based trade analyst Mariana Fernandez with the Canadian Trade Policy Institute points out that these tariffs could ultimately hurt American consumers too. “When you disrupt established supply chains, costs inevitably rise throughout the system,” she noted during our conversation at her downtown office. “The American construction and automotive sectors will face higher input costs, which eventually translates to higher prices for homes and vehicles.”
Provincial officials have joined federal counterparts in expressing concern. Ontario Economic Development Minister Vic Fedeli confirmed to me that the province is coordinating with federal counterparts on support measures.
“We’re looking at what we can do at the provincial level to complement federal actions,” Fedeli said during a phone interview. “This includes expediting certain programs already in place for manufacturing innovation and workforce development.”
For workers and families in Ottawa, the uncertainty is palpable. At the United Steelworkers union hall on Carling Avenue, I spoke with several members who described their concerns about job security.
“We’ve been through trade disputes before, but this feels different,” said Michel Tremblay, a 22-year veteran of the metals industry. “The politics seem to be driving the economics rather than the other way around.”
Business leaders emphasize that predictability matters as much as the tariffs themselves. Ottawa Chamber of Commerce president Janet Wilson told me that companies can adapt to changed conditions if given time and certainty.
“What keeps business owners up at night isn’t just costs – it’s not knowing what those costs will be six months from now,” Wilson explained. “That uncertainty freezes investment and hiring decisions.”
The federal government appears to be pursuing dual tracks: preparing support measures while also working diplomatic channels to secure exemptions or modifications to the proposed tariffs. Trade officials note that Canada successfully negotiated exemptions during previous rounds of metal tariffs, though they acknowledge the political landscape has changed.
For everyday Ottawa residents, these high-level trade disputes eventually translate to tangible impacts on local businesses, job opportunities, and even prices at stores. The interconnected nature of modern manufacturing means ripple effects extend well beyond the immediate metal producers.
As this situation continues to develop, I’ll be following the impacts on our local economy and the effectiveness of government support measures. What’s clear is that Ottawa finds itself once again navigating the complex relationship between international trade policy and community economic stability.
