The US aluminium industry urged Trump to exempt tariffs on Canada to counter unfair Chinese aluminium trade. Credit: Kichigin/Shutterstock.

The Mining Association of Canada (MAC) has expressed concern over the impact of US Government-imposed tariffs on Canadian minerals and metals.

The tariffs, announced by President Donald Trump on 1 February, include a 25% additional tariff on imports from Canada and Mexico, and a 10% additional tariff on imports from China, with Trump citing national security concerns related to illegal aliens and drugs. Canadian energy resources, however, will be subject to a lower 10% tariff.

Mining Association of Canada (MAC) president and CEO Pierre Gratton has opposed the US decision to levy tariffs on Canadian products.

Gratton emphasised the importance of the partnership on critical minerals between Canada and the US, suggesting that both countries should focus on deepening their collaboration instead of imposing tariffs.

Gratton said: “Canada has long been a dependable partner, providing certainty to US manufacturing and defence industries by serving as a major supplier of minerals and metals. In 2022, 52% of Canada’s mineral exports – valued at more than $80bn [C$120.45bn] – were destined for the US.

“The imposition of tariffs on Canadian minerals and metals products runs counter to American national security and economic interests. These tariffs will disrupt the essential flow of mineral and metal resources, exacerbate vulnerabilities in critical mineral supply chains that both nations have been working to address and raise the costs of doing business for our US customers.”

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The mining industry is a “major sector” of Canada’s economy, contributing C$161bn to the national gross domestic product and accounting for 21% of the country’s total domestic exports. It supports 694,000 jobs directly and indirectly nationwide.

The MAC also highlighted the potential for Canadian mining companies to seek alternative markets and sources of inputs, which could negatively impact US businesses. In addition, MAC called on Canadian governments to address internal economic barriers to enhance competitiveness and prosperity.

The US aluminium industry, represented by the Aluminum Association president and CEO Charles Johnson, has also requested an exemption for Canadian aluminium imports.

Johnson pointed out the critical role of aluminium in the US economy and defence, and the reliance on Canadian imports for production and fabrication. He added that aluminium is one of 11 mineral commodities featured on every government critical materials list, including that of the Department of Defense.

Johnson said: “The US is a powerhouse in aluminium production and fabrication against global competitors. That strength relies on imports of upstream aluminium, both smelted and scrap, from Canada.

“To ensure that American aluminium wins the future, President Trump should exempt the aluminium metal supply needed for American manufacturers, while continuing to take every possible action at the US border against unfairly traded Chinese aluminium.”