Message from the OGMA President on Tariffs on Aluminum and Glass
It is with great frustration that I write this article. As the president of the Ontario Glass and Metal Association (OGMA) and a fellow industry member, I am with all of you in trying to navigate the economic trade war between Canada and the United States of America.
The OGMA expresses deep concern over the recent imposition of tariffs by the U.S. on our products. These tariffs threaten the livelihoods of countless workers across Canada and disrupt trade relations between two longstanding allies and partners.
Canada’s glass and metal sectors have a rich history of innovation, quality, and sustainability, and we are proud to contribute to the global economy. We believe that fair and open trade benefits both nations, promoting growth, job creation and a stronger economic partnership. The imposition of tariffs undermines these principles and threatens the competitiveness of our industry in an increasingly interconnected global market.
Our industry is committed to working closely with the Canadian government and our U.S. counterparts to find constructive solutions that protect jobs, promote innovation, and ensure mutual prosperity. We remain hopeful that this issue will be addressed through diplomatic channels, focusing on collaboration rather than barriers that hurt workers, businesses, and consumers on both sides of the border.
We urge both governments to continue to engage in dialogue and work toward a fair resolution that strengthens the Canada-U.S. trade relationship and ensures that Canadian businesses can continue to compete on a level playing field.
Reciprocal tariffs on float glass
Our message to the government of Canada is as follows:
We, representatives from the Ontario glass industry, are deeply concerned with float glass’s inclusion on the proposed list of the Canadian second round of reciprocal tariffs. This move will have a significant and detrimental effect on our industry, and we believe it is imperative that the government not apply tariffs to these goods.
Float glass is a critical component in the construction industry. The imposition of a 25% tariff will disrupt all construction and lead to broader economic issues through the economy.
The OGMA stands ready to collaborate with all levels of government to find a solution that supports Canadian manufacturers and workers while creating a trade environment that benefits all parties involved.
Since Canada does not produce float glass, adding layers of tariffs to the product would be crippling and provide no benefit to Canadian industry. Buying float glass overseas at the volumes required is not practical. Of importance on the tariff list are the float glass products in the 7005 category group. We will be working with other industry organizations to try to have the tariffs removed. So far, the tariffs are still in place, but there are still a few days before the tariff on these products will be implemented. We strongly encourage you to remove the 7005.10, 7005.29, and 7005.21 product categories from the list of retaliatory tariffs.
The federal government is seeking input from the industry. The proposed retaliatory tariff list is open for public review and comment here. Please submit your response! The deadline to respond is April 2, 2025.
Tariffs on aluminum and steel exports
In conjunction with the float glass tariffs, the American government has placed tariffs on aluminum and steel exports in the amount of 25 percent. As of April 2, the U.S. government has announced the 25 percent tariff will increase to 50 percent on aluminum and steel exports.
Aluminum and steel are vital materials used by numerous industries, including automotive, aerospace, construction, and technology. The imposition of reciprocal tariffs disrupts the trade flow and undermines Canada’s longstanding position as a global leader in aluminum and steel production. It places Canadian aluminum and steel producers at a significant disadvantage while increasing costs for downstream industries that rely on access to competitively priced materials.
We urge the government of Canada to take immediate and effective action to address these tariffs. Canada’s aluminum industry has a strong record of sustainability, innovation, and meeting the highest global standards. We encourage the Canadian government to engage diplomatically with our trading partners to remove or reduce these reciprocal tariffs, ensuring a fair and level playing field for Canadian businesses.
Additionally, we ask the government to consider long-term strategies to strengthen Canada’s aluminum and steel sectors, such as investing in domestic infrastructure and supporting the continued development of environmentally responsible and competitive aluminum and steel production. By doing so, Canada can reinforce its position as a key player in the global aluminum and steel market and ensure the continued growth of Canadian jobs and industries. Aluminum HTS codes are in the 7610.10.00 category and the steel HTS codes are in the 7308.90.00 range.
Navigating the tariffs
I am unsure how much guidance we can give as the tariff situation seems to change weekly and the U.S. government seems to change tariff amounts daily, which means that as I write this article, the situation could change. Which, as I am sure you are aware, is extremely frustrating for everyone to navigate.
A key thing to remember is that only the aluminum and steel materials are currently being tariffed. This means that services rendered are not subject to tariffs and can be outlined as a separate line item on commercial invoices. Breaking out the commercial invoice into several line items allows U.S. customers to receive minimal added costs, which in turn could result in orders continuing to be placed.
The other key point to remember is that whoever is listed as the “importer of record” on the customs invoice will be the one who pays the tariffs. You do not have to be an American company to be the importer of record for materials imported into the U.S. We strongly encourage all Canadian companies to have their American customers get set up with a customs broker to ensure that the American customer is the importer of record and not the Canadian shipper.
While we work through this trade war, we want you to remember that the OGMA stands with all of you. We will work with government agencies to try to keep the negative economic impacts to a minimum. With uncertainty at an all-time high, I encourage you to contact me or any OGMA board member with questions or concerns. I hope we can mitigate the tariff situation quickly and return to business as usual.
The proposed Canadian response to the second wave of tariffs can be seen in the link below.
My message to everyone is to stay strong and stand in unison. We will get through these challenging times and Canada will come out of this stronger than before! I stand with you all and never forget, we are all in this together!
Blake Sanders
President of OGMA
Vice-President of Finance at Spandreltech Ltd.