Tenaris shares are lower Monday, as the Canadian-based steel pipe manufacturer announced it has temporarily cut 40 staff at its Canadian city plant, as a direct result of uncertainty relating to the newly imposed US steel import tariffs.
By 1200 BST, Tenaris shares were 0.80% lower at €15.59. The stock has been volatile in recent weeks.
US tariffs weigh on Tenaris’ outlook
Tenaris Algoma Tubes, which is based in Sault Ste. Marie, Ontario, is a seamless steel pipe maker. The firm announced Saturday that it was “temporarily” laying off 40 of its staff from the plant as it assesses demand and profitability in the face of the US steel import tariffs that are now in place.
The news comes after the firm hired some 50 new workers less than a year ago, amid cautious optimism over the future market.
Speaking Saturday, David McHattie, head of Tenaris institutional relations, said the newly devised and imposed tariffs had brought and air of uncertainty to the industry.
“The market outlook remains uncertain as we continue to understand the full-scale impacts of cross-border tariffs and due to the increase in imports to Canada from countries that have also lost the US market as a result,” McHattie said.
He added that the tariffs have “created an unsustainable market to serve our US customers.”
Canada imposes retaliatory tariffs
The news of the layoffs at the Canadian steel factory comes as Canada has announced its final import tax list and also announced a C$2 billion package of support for its steel industry.
Canada’s tariffs began July 1st and include a 25% tariff on some US steel and aluminium imports. There are also additional import taxes on other imported US goods, including
- Washing machines.
- Orange juice.
- Motor boats.
Indeed, Canada’s United Steelworkers union added its support to Canada’s counter-tariffs that are now in place.
“We support the countermeasures announced by the federal government and believe that they must be comprehensive and immediate,” The United Steelworkers union’s Canadian director Ken Neumann said.