U S- Canada trade solution ‘easier said than done,’ says Toronto steel manufacturer

Newscasters: The steel and aluminum industry continues to bear the brunt of Donald Trump’s trade war. Dealing with a 50% levy compared to the 35% that has now come into effect on other industries. Well, for reaction on that, we’ve invited into the studio, Raheem Mlu, who is from Toronto. He’s the owner and managing director of Conquest Steel, a Canadian manufacturer and distributor.

Of landscape and building materials. Thanks so much for joining us in studio,

Rahim Moloo: despite the circumstances. Thank you for having me.

Newscasters: Well, let’s talk about the circumstances, Raheem. Mm-hmm. Because there’s the deal that many Canadians were hoping would be reached today, and then there’s the specific levies that you have to deal with.

Mm-hmm. 50%. So let me begin by asking you, how are you feeling about the fact that we don’t have a deal today?

Rahim Moloo: Um, we were more or less expecting that there wouldn’t be a deal that takes place, uh. Our, uh, American business evaporated essentially overnight in February and, uh, over the past 24 hours, if anything, I’m just, you know, more thankful to, to live in a country where our leadership takes running a country seriously instead of treating it as a spectacle.

Newscasters: Let me ask you then more about losing your American clientele, you said overnight.

Rahim Moloo: Mm-hmm.

Newscasters: So what kind of impact did that have on your business?

Rahim Moloo: Uh, it was a tremendous impact. I mean, these are our customers and distributors we had been dealing with for many, many years. Uh, unfortunately, the, uh, threat of the tariffs was enough to create an uncertain, uh, business climate.

So losing that business overnight certainly helped. Uh, fortunately we were able to pivot and come up with creative solutions like offering, uh, some of our, uh, race garden beds at cost to Canadian consumers, which allowed us to, uh, regain our capital costs and keep churning and moving forward. And I think, uh, for us, that’s the name of the game now, continuing to develop new products inside of Canada and, uh, continuing to push forward and, uh, couldn’t agree more with, uh, prime Minister.

Uh, mark Carney’s comments about Canada being our best, uh, buyer moving forward. Um, I don’t think it. Canada is our backup plan. It’s always been our, uh, our primary focus. And if anything, I think there’s, there’s more potential with the right support. Uh, ideally we would see more protections, not just on raw material, but also on finished goods that are entering the country.

Especially now with the increased risk of dumping as well too.

Newscasters: That’s right. And so much of that has to deal with. China and, mm-hmm. Turkey, but even from the United States, you know, steel products coming into this country. Absolutely. When we’re producing it ourselves. And what I’m hearing from you, Raheem, which is really great, is that you’ve been able to adapt, right?

You’ve been able to pivot and you’re making it work for you. Mm-hmm. But I’m sure you’re hearing from others in your industry and in others that they’re. They’re not able to. Yes. And they’re really scared. And a 50% levy is no joke. Absolutely. So, so tell me about what you’re hearing from your friends and colleagues who cannot pivot.

Rahim Moloo: Well, I think there’s a, there’s certainly a lot of concern in heartache. I mean, we’re seeing a lot of layoffs hitting the steel sector as well too. Um, but it’s, uh, it’s a problem that’s, it’s not gonna go away overnight. There’s no magic bullet or solution that’s, uh. Going to magically make this problem disappear.

I think for as long as President Trump is the president of the United States, we have to be prepared for a, a prolonged, uh, fight. And that’s certainly what we’re, we’re ready for. And, um, you know, I have, I have faith that Canadians are resilient. Uh, we have, we have ice in our veins. We’re not gonna shy away from a fight.

So I. I see the, the hurt and the heartache on a, on a daily basis, but I also see at the same time that it’s a rallying cry for people. Um, and, you know, no amount of huffing or puffing on Twitter is, is gonna change that. I think if anything, what I see on the ground is it makes people dig in even more and believe in ourselves even more.

Newscasters: How do you think we should continue? So I totally hear that, like, let’s not negotiate on social media. Mm-hmm. But do you think our government is doing enough? Or do we need to get a bit more aggressive? We’ve heard from Ontario Premier, Doug Ford hit him back with retaliatory tariffs, make it dollar for dollar.

Rahim Moloo: Mm-hmm.

Newscasters: Would you wanna see that type of an approach?

Rahim Moloo: I mean, you know, I think there’s two components of it. One is, uh, just as a Canadian Yeah, absolutely. I mean, you know, we never want to shy away from a fight. Uh, and you want to meet him punch for punch. And I mean, on the business side of that, um, you know, it’s easier said than done.

And I think there needs to be a bit of a middle ground there. And fortunately we have leadership that that really cares about, at least I feel that cares about doing the, the right thing for, for our country. And um, unfortunately I think a lot of it is, is out of our hands. Um, even if a deal is reached, how do you have confidence that the deal is gonna be honored when, uh, the person who made the deal in the first place is the one ripping it up?

Mm-hmm. Uh, and uses, um, current events as distractions and, and treats, uh, running a country. More like entertainment and spectacle than something that’s actually serious. Uh, so I, I think our best path moving forward is, is being strong together, not bending the knee like Premier Doug Ford said. Uh, and finding a, a way to develop and, uh, build our manufacturing sector sector, um, so that we are, uh, we’re a stronger and better country at the end of the day, and I think we’re.

We’re proof of it. I mean, my parents came to this country with nothing in their pockets. And you, you fast forward to today, we’re a second generation, uh, business that’s built on Canadian soil, that employs Canadians, that uses Canadian steel, that research and develops new products in Canada and is committed to trying to make a difference and hopefully make, uh, uh, the country a better place for future generations as well too.

And, uh, if we can do it then. Anybody can, and I’m sure that we’re not the only, uh, small business in Canada that feels that way as well too.

Newscasters: Really great to get your perspective and your optimism. Raheem Molo, thank you for coming into studio for us again, despite

Rahim Moloo: the circumstances. It’s my pleasure.

Newscasters: Appreciate it.

Source: https://www.cbc.ca/player/play/video/9.6854179