GoliathTech Opens US Factory to Bypass 50% Steel Tariffs

Pieux GoliathTech, a Canadian manufacturer of steel helical pile foundation systems, has opened a new facility in Cincinnati, Ohio. This expansion wasn’t a strategic choice, but a necessary response to significant financial pressures stemming from U.S. tariffs, according to President and CEO Julian Reusing.

A Tariff-Driven Shift

In 2025, Pieux GoliathTech experienced losses of $2 million directly attributable to the imposition of tariffs. The company produced 5.3 million pounds of steel in 2025 and aims to increase production to 8.3 million pounds in 2026. Currently, 65% of its production is exported to the United States, where it is now subject to a 50% tariff.

“No company can have 50% tariffs on its products and exist,” Reusing stated, underscoring the severity of the situation. The decision to open the Ohio plant, finalized January 1st and currently employing 15 people, was a reluctant one.

Financial Challenges and Limited Support

Reusing also expressed frustration with the lack of financial support from Canadian banks. While the Business Development Bank of Canada (BDC) offers a “pivot to propel” fund – providing up to $5 million in loans to counter tariff effects – access is contingent on demonstrating company profitability. This creates a paradoxical situation, as companies experiencing losses due to tariffs are ineligible for the assistance.

“If you’re losing money because of the tariffs, the solution is this federal program. But, you’re not eligible, because you’re losing money,” Reusing explained. The company was forced to eliminate 20 positions at its Magog, Quebec headquarters to reduce costs, but anticipates rehiring approximately 15 employees with the new U.S. facility operational.

Reusing acknowledged the long-term implications of this shift, stating, “In theory, this tariff problem is solved. But, it doesn’t solve the effect that there will be no more exports from Canada to the United States for 65% of our sales. These are millions of pounds of steel. They will be manufactured in the United States instead of Canada, which is sad for the country.”

Looking Ahead

While the Cincinnati plant addresses the immediate tariff issue, the long-term impact on Canadian manufacturing remains uncertain. Pieux GoliathTech’s headquarters and manufacturing for global markets will remain in Quebec. It is possible that other Canadian steel manufacturers may face similar pressures and consider relocating production to the U.S. to avoid tariffs. Alternatively, the Canadian government could pursue further negotiations to address the tariff issue. The company’s future success will likely depend on its ability to adapt to the changing trade landscape.

Frequently Asked Questions

What prompted Pieux GoliathTech to open a U.S. facility?

The company opened a facility in Cincinnati, Ohio, due to $2 million in losses incurred in 2025 as a result of a 50% tariff on steel exports to the United States.

What is the status of the company’s Canadian operations?

Pieux GoliathTech’s headquarters and manufacturing for global markets remain in Quebec. The company eliminated 20 positions at its Magog, Quebec headquarters but expects to rehire approximately 15 employees.

Is the company receiving financial assistance from the Canadian government?

While the BDC offers a loan program to mitigate tariff effects, Pieux GoliathTech is currently ineligible because it is experiencing losses due to the tariffs.

How might shifts in international trade policy affect the future of Canadian manufacturing?