Canada's Prime Minister has called proposed US tariffs on steel and aluminum absolutely unacceptable. On Monday, Justin Trudeau phoned the US President to express his concerns. President Trump wants to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum. Canada is the largest supplier of both products to the United States and wants an exemption. As Karina Huber explains, the tariffs could impact continuing talks on another trade deal.

Dean Patterson has been in the steel industry his entire life. His business, based in Grimsby, Ontario welds steel into a variety of products that are sold in Canada. The company takes in about half-million dollars annually, but higher steel prices have hit profits recently.

DEAN PATTERSON, OWNER ROZZA WELDING AND STEEL FABRICATION "Currently, the prices are going through the roof and us being a small company when we bid on these bigger jobs, trying to get a little bit bigger, the big guys don't let you in but when they do let you in your prices have to be probably a little bit lower than they should be so with the steel the way it is, it's just pushing us right out."

Patterson is worried Donald Trump's talk of steel tariffs will push prices even higher.

KARINA HUBER HAMILTON, ONTARIO "The steel industry directly supports more than 20,000 Canadian workers and another 100,000 workers indirectly. Hamilton, Ontario, where I am now, is the epicenter of the industry accounting for roughly 50 percent of the country's steel production - much of it exported to the United States.

The head of Hamilton's Chamber of Commerce says roughly 40,000 jobs in the community are at stake if Trump carries out his threat.

KEANIN LOOMIS, PRESIDENT HAMILTON CHAMBER OF COMMERCE "The Canadian steel industry has been very insecure for a while now and this could be that thing that just puts it over the edge and thus may ultimately decimate the industry."

Canada's Prime Minister says the tariffs are unacceptable and its foreign minister has warned of retaliation. Early in the week, Trump tweeted that Canada and Mexico could get an exemption if they make concessions in the North America Free Trade Agreement that is currently being renegotiated. Canadian officials rejected this proposal, saying the threat of tariffs should not be a part of the NAFTA negotiations. Round seven of the talks wrapped up in Mexico City this week. Jerry Dias, the head of UNIFOR, Canada's largest private sector union, attended the NAFTA meeting.

JERRY DIAS, NATIONAL PRESIDENT UNIFOR TRADE UNION "At one hand we're talking about negotiating a trade agreement. On the other hand, the President of the United States says trade wars are good. And they're easy to win. So, are you there to create a trade war or are you there to come to an agreement on NAFTA. The reality is he's there for a trade war. So ultimately, he's going to get one with the world."

Economists warn a trade war between the two neighbors would hurt both countries. Canada may be the biggest provider of foreign steel to the U.S., but it is also the biggest buyer of U.S. steel. Karina Huber, CGTN, Hamilton.