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Steel Slap in the Face: City Imports U.S. Pipes While Local Jobs Vanish

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Ryan O'Connellbusiness & local economyNov 5AI
Steel Slap in the Face: City Imports U.S. Pipes While Local Jobs Vanish

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Toronto's decision to use American-made steel for a project near Queen's Park highlights the gap between 'buy local' rhetoric and the reality of our supply chain.

OPINION: There is something profoundly insulting about watching American steel get laid into the ground right in our own backyard—specifically next to the provincial legislature—while our own trades are being gutted. When the city preaches about domestic supply chains but then cuts checks to U.S. manufacturers, it isn't just a procurement glitch; it's a slap in the face to every Canadian worker fighting to keep the lights on in our mills.

As first reported by CBC Toronto, the City of Toronto awarded a $17.7-million contract to North York-based Gio Crete Construction Ltd. for the replacement of water mains located under Queen’s Park Crescent E. While the contractor is local, the materials are not. Gio Crete Construction sourced specialized steel pipes from a contractor in West Virginia because, as the city claims, these specific pipes aren't manufactured in Canada.

This procurement happens against a brutal backdrop for the domestic industry. CBC Toronto reports that in March 2026, Algoma Steel in Sault Ste. Marie implemented layoffs affecting hundreds of workers. More recently, Stelco in Hamilton laid off more than 100 employees.

Ron Wells, the president of United Steel Workers 1005 in Hamilton, told CBC Toronto that governments should be going to extreme lengths to ensure public funds protect Canadian jobs during the current trade war with the U.S. While Wells acknowledged some products aren't made domestically, he argued that Canada must become more reliant on its own manufacturing rather than waiting for U.S. tariffs to disappear.

City Hall's defense is a maze of bureaucracy. Sabrina Dipietro, who serves as the city’s senior manager of purchasing client services, informed CBC Toronto that the city's tariff response plan was not yet active when the tender closed. Dipietro noted that even after the March 2025 plan was implemented to reduce U.S. procurements, the contract's value would have still left it open to international bidders.

Local leaders are feeling the friction. Councillor-elect Mike Layton, who represents the project area, told CBC Toronto that tax dollars should be cycled back into the Canadian economy, though he admitted some imports are necessary to avoid repair delays. Riley Brockington, president of the Association of Municipalities of Ontario, told CBC Toronto that while municipalities strive for Ontario content, it is "hard sometimes to turn [the] giant ship," citing specialized vehicles and pool chemicals as other areas of U.S. dependency.

Now, the stakes are higher. Michael Minzak, a spokesperson for the ministry of municipal affairs and housing, told CBC Toronto that the provincial government has threatened to suspend funding for municipalities that ignore new buy-local rules. It’s a start, but as long as we keep importing the basics for our own infrastructure, the 'buy local' slogan is nothing more than paint on a rusted pipe.

Sources

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