Pieux GoliathTech Forced to Open US Factory Amidst Crippling Tariffs – Breaking News
Cincinnati, OH – In a move described as a “last resort” and “the last thing we wanted to do,” Canadian steel foundation manufacturer Pieux GoliathTech has opened a new factory in Cincinnati, Ohio. The decision, announced today, isn’t a sign of expansion, but a direct response to devastating 50% tariffs imposed on exports to the United States, a situation that President and CEO Julian Reusing calls “literally impossible” for the company to survive.
Photo: Radio-Canada / Alexandra Duchaine
Tariffs Trigger Relocation, Job Losses in Quebec
Pieux GoliathTech, specializing in screw pile foundation systems, reported $2 million in losses in 2025 solely due to the tariffs. The company currently exports 65% of its production – 5.3 million pounds of steel in 2025, with a target of 8.3 million pounds for 2026 – to the US market. Facing a 50% tax on those exports, Reusing explained that continued operation in Canada was unsustainable. “No company can have 50% tariffs on its products and exist,” he stated.
The Cincinnati plant, operational since January 1st, currently employs 15 people. However, this expansion came at a cost: 20 positions were eliminated at the company’s Magog, Quebec headquarters. Pieux GoliathTech anticipates rehiring approximately 15 employees in the coming months, but the net effect represents a shift of production and economic activity away from Canada.
Government Support Proves Inaccessible
While the Business Development Bank of Canada (BDC) offers recovery funds, including a “loan pivot” program providing up to $5 million to counter tariff effects, Pieux GoliathTech found itself locked out. The program requires demonstrable profitability – a condition the company cannot meet *because* of the tariffs. “If we lose money because of tariffs, the solution is this federal program. But, you don’t qualify, because you’re losing money,” Reusing lamented, highlighting a frustrating Catch-22 for Canadian exporters.
A Broader Trend: The Impact of Trade Policies
This situation isn’t isolated. Pieux GoliathTech’s predicament underscores the significant challenges faced by Canadian businesses navigating complex and often punitive trade policies. The company’s CEO expressed concern about relying on potential shifts in US political winds, stating, “We can’t wait for Mr. Trump to change his mind.” This highlights a growing desire for stable, predictable trade relationships.
Evergreen Insight: The imposition of tariffs and the subsequent impact on businesses are recurring themes in international trade. Historically, tariffs have been used as tools for protectionism, aiming to shield domestic industries from foreign competition. However, they often lead to retaliatory measures, escalating trade wars and disrupting global supply chains. Understanding the nuances of trade agreements, such as the USMCA (formerly NAFTA), and the potential consequences of protectionist policies is crucial for businesses operating in a globalized economy.
Lost Canadian Production, Global Head Office Remains
Despite the relocation of production for the US market, Pieux GoliathTech maintains that its head office and manufacturing for global markets outside of North America will remain in Quebec. However, the loss of 65% of its sales volume from Canadian production is a significant blow. Reusing estimates this represents “millions of pounds of steel” that will now be produced in the United States instead of Canada, a situation he describes as “sad for the country.”
Louis Villeneuve, the MP for Brome-Missisquoi, has pledged to meet with the company to discuss the situation. The Ministry of Finance has yet to respond to requests for comment.
The story of Pieux GoliathTech serves as a stark warning about the real-world consequences of trade disputes and the urgent need for effective government support mechanisms that are accessible to businesses facing genuine hardship. It’s a reminder that economic policy decisions have a direct and often painful impact on the lives of workers and the health of the Canadian economy, and that proactive solutions are needed to prevent further erosion of domestic manufacturing capacity.
Stay tuned to archyde.com for continuing coverage of this developing story and in-depth analysis of the evolving landscape of international trade. Explore our Business & Trade section for more insights and expert commentary.
