WINDSOR, Ont. – Canadian commercial vehicle manufacturers continue to voice concerns about the potential of a “significant negative impact” caused by surtaxes on steel and aluminum, as a trade war with the U.S. begins to escalate.

In a Canadian Manufacturing Coalition briefing with representatives of Global Affairs Canada, Don Moore, director of government and industry relations with the Canadian Transportation Equipment Association (CTEA), said trailer and vocational truck manufacturers would be hit particularly hard.

The smaller businesses in the sector wouldn’t be able to sustain themselves in a protracted trade war that focused on these materials, he said during the call.

Other association members noted that many steel and aluminum products – particularly specialty items used in the vehicle manufacturing – are currently sourced exclusively in the U.S., and no Canadian options are available. The government representatives were asked to help the industry develop other sources for the goods.

One of the Global Affairs spokespeople reportedly told those on the call that the government plans to “hold fast” on the U.S. tariffs that are seen as “illegal sanctions”.

The 25% tariff on Canadian steel and 10% applied to aluminum was applied by the U.S. on June 1.