Terrebonne Company Closes Due to Unmanageable Customs Prices

Quebec steel Manufacturer Forced to Close Amidst Trump-Era Tariffs

October 3, 2025

Terrebonne, Quebec – Roger Steel, a long-standing stainless steel fabrication company, announced today it will be ceasing operations on november 19th. The closure, impacting 53 employees, is a direct result of the 50% customs tariffs imposed by the United States on Canadian aluminum and steel since June, according to company officials.

Roger Michael Cyr, chief Executive Officer of Roger Steel, confirmed the difficult decision, stating the tariffs enacted by the United States made continued operation unsustainable. He declined to provide further comment at this time. The company, established in 1970, specializes in the custom manufacturing of stainless steel and steel equipment.

Roger Steel’s product line includes a diverse range of fabricated items, such as skips, fan boxes, and calcinators. The manufacturer served a wide range of industries requiring specialized metal components. Industry analysts suggest this closure could signal a broader trend of Canadian manufacturers struggling to compete in the U.S. market due to ongoing trade disputes.

The impact of Tariffs on Canadian Industry

The imposition of tariffs by the United States has created significant headwinds for Canadian businesses. While intended to protect American steel and aluminum industries, these measures have disrupted established supply chains and increased costs for manufacturers across multiple sectors. According to a recent report by the Canadian Manufacturers & Exporters, Canadian manufacturing sales have experienced a slowdown, with a noted decrease in exports to the U.S. in the metals and fabricated products categories.

Did You Know? The United States originally imposed these tariffs citing national security concerns, but many trade experts argue that the tariffs are protectionist measures.

Factor	Details
Company Affected	Roger Steel (Terrebonne, Quebec)
Number of Employees Impacted	53
Closure Date	November 19, 2025
Tariff Rate	50% on Canadian steel and aluminum
Year Founded	1970

Pro Tip: Businesses operating in trade-sensitive industries should proactively diversify their markets to mitigate risks associated with fluctuating tariff policies.

The closure of Roger Steel serves as a stark reminder of the real-world consequences of trade policy decisions. As Canada continues to navigate complex international trade relations, support for affected businesses and workers will be crucial.

What further steps should the Canadian goverment take to support businesses impacted by these tariffs? What role can innovation play in helping Canadian manufacturers remain competitive on the global stage?

Understanding Trade Tariffs and Their Effects

Trade tariffs, essentially taxes on imported goods, have been used for centuries as a tool for economic policy. While they can protect domestic industries from foreign competition, they also increase costs for consumers and can lead to retaliatory measures from other countries.The modern use of tariffs is often linked to ongoing trade negotiations and attempts to rebalance trade deficits.Understanding the nuances of tariff implementation and their broader economic impact is essential for both businesses and policymakers.

frequently Asked Questions About Tariffs and Canadian Manufacturing

• What are tariffs? tariffs are taxes imposed by a government on goods and services imported from other countries.
• How do tariffs affect businesses? Tariffs increase the cost of imported materials, possibly reducing profitability and competitiveness.
• What is the current tariff rate on Canadian steel entering the US? Currently, the tariff rate is 50%.
• what can Canadian manufacturers do to mitigate the impact of tariffs? Diversifying markets, increasing efficiency, and innovating new products are potential strategies.
• Is there government assistance available for businesses affected by tariffs? The Canadian government offers several programs to support businesses facing trade challenges.

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What strategies could the Terrebonne company have employed to mitigate the impact of rising import duties and customs costs?

The Rising Tide of Import costs: A Terrebonne Case Study

A Terrebonne Parish-based manufacturing company, specializing in [insert specific industry – e.g., oilfield equipment components], recently announced it’s closure, citing unsustainable increases in customs prices as the primary driver. This isn’t an isolated incident; businesses across Louisiana and the nation are grappling with escalating import costs, impacting profitability and, in some cases, forcing difficult decisions like this one. The company, which employed approximately 75 local residents, had been operating for over 20 years. This closure highlights the critical need for businesses to understand and proactively manage the complexities of international trade and import duties.

Understanding the Factors Driving Up Customs prices

Several interconnected factors contribute to the surge in customs costs. These aren’t simply tariffs; they encompass a broader range of expenses.

* Tariffs & Trade Wars: Ongoing trade disputes and the implementation of tariffs on imported goods directly increase the cost of materials and components. The Section 301 tariffs, such as, continue to impact a wide range of products.

* Supply Chain Disruptions: Global supply chain bottlenecks, exacerbated by recent events, lead to increased shipping costs and delays, ultimately reflected in higher landed costs. Supply chain management is now more critical than ever.

* Currency Fluctuations: Changes in exchange rates can significantly impact the cost of imported goods. A weaker US dollar makes imports more expensive.

* Increased Scrutiny & Compliance: Heightened customs enforcement and stricter compliance requirements necessitate increased administrative costs and potential penalties for errors. Customs compliance is a growing concern.

* Port Congestion & Demurrage: Overcrowded ports and associated demurrage charges (fees for exceeding free time at the port) add substantial costs to the import process. Port congestion is a major issue.

The Impact on Terrebonne Parish Businesses

Terrebonne Parish, with its meaningful presence in the energy sector and related industries, relies heavily on imported materials and components. The closure of this particular company serves as a stark warning to others.

* Reduced Local Employment: The loss of 75 jobs represents a significant blow to the local economy.

* Ripple Effect: The closure impacts suppliers and othre businesses within the Terrebonne Parish ecosystem.

* Increased Costs for remaining Businesses: Companies still importing face higher costs, potentially leading to price increases for consumers or reduced profit margins.

* Supply Chain Vulnerabilities: The incident exposes vulnerabilities in local supply chains, highlighting the need for diversification. Supply chain resilience is key.

Navigating the Customs Landscape: Strategies for Mitigation

While completely avoiding increased customs costs might potentially be impossible, businesses can implement strategies to mitigate their impact.

1. Duty Drawback: Explore duty drawback programs, which allow companies to recover duties paid on imported materials used in exported products.
2. Free Trade Agreements (FTAs): Leverage FTAs to reduce or eliminate tariffs on goods imported from partner countries. Thorough FTA analysis is crucial.
3. Supply Chain Diversification: reduce reliance on single suppliers or countries by diversifying your supply chain.
4. Nearshoring/reshoring: Consider sourcing materials from closer locations (nearshoring) or bringing production back to the US (reshoring) to reduce transportation costs and potential tariff exposure.
5. Optimized Logistics: Streamline logistics operations to minimize delays and demurrage charges.
6. Accurate Valuation & Classification: Ensure accurate valuation and classification of imported goods to avoid penalties and overpayment of duties. Harmonized Tariff Schedule (HTS) classification is vital.
7. Customs Broker Expertise: Partner with a reputable customs broker to navigate the complexities of import regulations and ensure compliance.

Real-World Examples & Lessons Learned

Several other US-based companies have faced similar challenges. For example, in 2023, a furniture manufacturer in North Carolina temporarily suspended operations due to escalating tariffs on imported wood products. They were ultimately able to restructure their supply chain and negotiate better terms with suppliers, but the disruption was significant. This underscores the importance of proactive planning and adaptability.

Benefits of Proactive customs Management

Investing in robust customs management practices offers several benefits:

* Reduced Costs: Minimizing duties, fees, and penalties directly impacts the bottom line.

* Improved compliance: Avoiding costly errors and ensuring adherence to regulations.

* Enhanced Supply Chain Resilience: Building a more robust and adaptable supply chain.

* Competitive Advantage: Maintaining profitability and competitiveness in the global marketplace.

* Peace of Mind: Knowing your import operations are compliant and well-managed.

Resources for Further Data

* U.S. Customs and border Protection (CBP): https://www.cbp.gov/

* International Trade Governance (ITA): https://www.trade.gov/

* national Customs Brokers & Forwarders Association of America (NCBFAA): https://www.ncbfaa.org/

* Harmonized Tariff Schedule (HTS): https://hts.usitc.gov/