The executive chairman and CEO of Zekelman Industries says tariffs would cost his business millions of dollars, however he understands why U.S. President Donald Trump wants to implement them.
Zekelman Industries is the largest independent steel tube and pipe manufacturer in North America.
Trump had ordered 25 per cent tariffs on Canadian imports, with the exception of energy, which would be subject to a 10 per cent tariff. In response, Canadian Prime Minister Justin Trudeau announced counter tariffs on $30 billion in American goods, primed to rise to $155 billion later this month.
Trump's concerns surrounded border security and fentanyl.
Speaking on AM800's The Shift with Patty Handysides, Windsor-born Barry Zekelman says Trump wants to protect the border from illegal immigrants.
"He's trying to close those gaps, and he's going to use every tool that's available to him, and while we don't like it, I mean those are the tools he has and he's waving a big stick," he said. "It's just the way he wants to get things done and get them done quickly."
He says both sides need to protect their borders to stop the flow of illegal guns, drugs and people.
"I don't like the threat of tariffs," Zekelman said. "It would cost my company tens of millions of dollars, but I understand what's going on. I understand the game that's being played, and look, [Trump] got action. You got 10,000 troops being down there, hopefully we're going to do enough to stem that, and then develop a more comprehensive long-term solution so that we're not constantly under these threats, so that we can be aligned with the U.S."
Zekelman says Canada subsidizes U.S. energy by $15 a barrel, worth $32-billion a year.
"The U.S. needs us," he said. "We're always going to be a net exporter to the U.S. because we're such a big land with vast resources, and a smaller population, and quite frankly we're a supporting nation in a very good way to the U.S., they know that. There are some areas that we have problems in, but again we have to take a look in the mirror and correct, and that goes both ways."
The trade war between Canada and the United States was paused for at least 30 days on Monday after Prime Minister Justin Trudeau and President Donald Trump came to an agreement.
Canada will appoint a "Fentanyl Czar" as part of its deal to avert Trump’s tariffs.