Romano warns against trying to bully Trump over steel tariffs: 'Algoma Steel will fold'

Sault MPP Ross Romano is passionately fighting proposed provincial legislation that would allow retaliatory measures against U.S. President Donald Trump's plan to slap a 25 per cent tariff on all non-U.S. steel.  

"If we anger our friends to the south, we risk compromising trade relations so much further," Romano told the Ontario Legislature Thursday.

"Major economic drivers will fold throughout our province, city by city. In a community like mine of Sault Ste. Marie, with the industry being steel, Algoma Steel will fold."

Instead of excluding American suppliers, Romano called on fellow MPPs to try a little telephone diplomacy.

"The answer is simple," Romano said. "If we look within each of our individual communities and we think about what our major businesses are that supply and drive economies south of the border, we can demonstrate to the leaders there with one phone call – if each one of us makes just one phone call to a leader south of the border that relies on our economies to keep their economies afloat – we can show the US that they need us as much as we need them. That’s how we can resolve this issue."

On Thursday, President Trump announced his intention to impose stiff tariffs on non-U.S. steel and aluminum next week, indicating the measures will remain in place for "a long period of time.”

“People have no idea how badly our country has been treated by other countries – by people representing us that didn’t have a clue. Or if they did, then they should be ashamed of themselves because they’ve destroyed the steel industry,” the president said.

It was the second day that Romano had risen in the Ontario Legislature to argue against Bill 194, which would provide the province with broad new powers to restrict government purchases against any U.S. jurisdiction imposing 'Buy American' measures that hurt Ontario industries.

On Wednesday, Romano responded to remarks from Vaughn MPP Steven Del Duca, who cited the mayors of Sault Ste. Marie and Hamilton and the chief executive officer of Essar Steel Algoma Inc. as supporters of Bill 194's retaliatory measures.

"I see your violin, member from Vaughan," Romano said.

"Do you know what? I’ve got my own violin over here, and I’m playing it on behalf of the people of Sault Ste. Marie, who you are destroying. You are killing the steel industry there."

"The member from Vaughan decided to quote the mayor from Sault Ste. Marie making reference to this legislation. What he doesn’t seem to appreciate, clearly, is that the people from Algoma Steel in Sault Ste. Marie have a huge problem with this legislation. They hate it."

While acknowledging that the U.S. president is "quite unpredictable," Romano warned against acting rashly against the nation south of us.

"The last thing you do is poke them in the eye. The last thing you do is antagonize. Rule 101 in any kind of negotiation: You start off trying to get a sense of what type of common ground you can achieve."

Romano then characterized Bill 194 as a bully tactic.

"I’m curious. Isn’t this the same government – on this very day, today, of all days, Pink Shirt Day – that passed bullying legislation? Here you are, responding to bullying tactics south of the border by being bullies right back at them. That’s really rich coming from you. You want to be a bully. You want to treat a bully with bullying tactics."

"It’s really rich coming from that side of the floor, which has been bullying and playing political games ever since I got here."

Romano nonetheless warned that Algoma believes President Trump's tariffs will "absolutely destroy" its business.

"What will it mean if Algoma Steel is lost in Sault Ste. Marie? Some 3,000 people will lose their jobs – 6,000 pensioners in the community. The steel plant will shut down. Huron Central Railway will necessarily shut down because about 80 per cent of their loads come from the steel plant. That will compromise Domtar in Espanola and Aecon in Nairn Centre. It’s a trickle effect. You’re going to kill all of these businesses specifically in northern Ontario because of that one," Romano said.

"If the steel plant shuts down, now the government is going to have to figure out how to deal with the disaster that will be left behind – a steel mill with nobody willing to operate it that, to clean up, would cost billions upon billions, if not more. Who’s going to pay for it? Government is going to have to pay for it. We’re all going to have to pay for it. We take another hit. We’re just getting hit and hit because of these types of policies."

"Don’t ram legislation down people’s throats just because you want to pick a fight with Donald Trump and you want to look good to voters in Ontario – because that’s exactly what you are doing. It’s disgraceful."

At this point on Wednesday, Romano tried unsuccessfully to move adjournment of the legislature, but lost by a 40-6 vote.

Romano continued, pointing to what he saw as deficiencies in Bill 194.

"This bill gives unchecked authority to the minister to determine whether an American jurisdiction should be defined as an offending jurisdiction. There’s no oversight. There are no checks and balances to understand how that would work."

If the Ontario Legislature approves retaliatory measures, it will be "basically poking the president of the United States in the eye," he said.

"Your pride is going to cost people their jobs. It’s going to destroy communities. That’s exactly what it’s going to do. You’re playing games with people’s lives right now. You have a person you can negotiate with, and instead you want to antagonize that person."

"Steel right now is selling for over $750 a tonne. They can survive. There are ways to do this the right way. You can negotiate. You can work toward a resolution that works for us all. No one is fooled by the political games."

Meanwhile, the United Steelworkers called Thursday for Canada's steel and aluminum producers to be excluded from President Trump's import tariffs.

"The evidence is clear that Canadian steel and aluminum imports are not part of the problem that the U.S. administration is trying to address," said Ken Neumann, Steelworkers national director.

"Canadian steel exports are part of deeply integrated supply chains for U.S. products. Imposing tariffs on Canadian exports risks causing significant economic harm and job losses on both sides of our border."

"The evidence confirms that tariffs and punitive actions are warranted against 'bad actor' countries that engage in illegal dumping and unfair trade practices, including China, Egypt, India, Malaysia, Korea, Russia, Turkey and Vietnam.," Neumann said.

"Canada is not the problem," said USW International President Leo Gerard.

"The United States and Canada have integrated manufacturing markets. In addition, the defence and intelligence relationship between the countries is unique and integral to our security. Any solution must exempt Canadian production."

"At the same time, Canada must commit to robust enforcement of its trade laws and enhance its cooperation to address global overcapacity in steel and aluminum," Gerard said.