A steel-products manufacturing company has announced lay-offs in northern Ontario after U.S. tariffs went into effect on Canadian steel and aluminium imports.

A spokesperson for Tenaris, which manufactures steel pipes, said 40 workers at the company's mill in the province of Ontario, will be laid off on Sunday, July 8 due to changes in the export market.

Tenaris has its headquarters in Luxembourg but has operations around the world. The company said the market remains uncertain as the trade dispute between the United States and Canada continues. "The environment is very uncertain and as such we do not have other plans," said David McHattie, Tenaris.

He also added that Canadian domestic steel market is suddenly facing additional pressure from other countries which are unable to export to the U.S. due to the tariffs. McHattie said the company is also adjusting its production levels as a result of the tariffs and what he called the "effect of increased import competition in Canada from countries no longer able to sell in the U.S."

The CBC reported that Tenaris churns out steel pipes in a state-of-the-art facility that began operating late last year, using solid rods of steel called billets that are made in its mills in Mexico, Romania, Italy and Argentina. A huge portion of the production was earmarked for the U.S. market. The company had hired employees at its northern Ontario mill to help with increased demand for the company's products, including steel pipes.

Tenaris is just one among many steel companies set up in Ontario that manufacture specialist products for the U.S. market.

The Canadian government has reacted sharply to Trump Administration’s tariffs by imposing tariffs on CAD 16 Billion worth of products. The Trudeau Administration has also announced a $2-billion in aid for the Canadian steel, aluminium and manufacturing sectors to help businesses retain skilled workers and avoid layoffs.

The Canadian tariffs went into effect on July 1 and target a range of products from ketchup to playing cards.

(The above story first appeared on LatestLY on Jul 03, 2018 09:08 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).