The Mining Association of Canada (MAC) has strongly condemned US President Donald Trump’s decision to impose tariffs on all Canadian products entering the US, warning of severe economic and security consequences.
MAC President and CEO Pierre Gratton expressed his concern, stating, “Canada has long been a dependable partner, providing certainty to US manufacturing and defense industries by serving as a major supplier of minerals and metals.” He emphasized that the tariffs contradict both US national security and economic interests.
The announcement followed Trump’s weekend declaration of 25% tariffs on Canadian and Mexican imports, along with 10% tariffs on goods from China. Additionally, a 10% tariff would be placed on all energy imports from Canada.
In 2022, over half of Canada’s mineral exports—worth more than $80 billion—were shipped to the US. MAC argues that the tariffs will disrupt critical mineral supply chains, strain resources, and increase costs for US businesses that depend on Canadian materials.
This move marks a significant shift in US-Canada trade relations, which had previously seen substantial collaboration. Under the Trump administration, the two nations established the Joint Action Plan on Critical Minerals Collaboration in 2020 to strengthen North America’s supply of essential minerals.
Gratton urged the US government to reconsider the tariffs and focus on deepening collaboration instead. He emphasized that Canada is still willing to work with the US to strengthen its critical mineral partnership.
In response to the tariffs, Canada is exploring alternative markets and suppliers, which could have long-term consequences for US industries. MAC warned that the move would hurt US businesses, as Canada’s mining sector shifts to new and existing markets.
In addition, MAC called on Canadian governments to address domestic economic challenges, including trade barriers, regulatory inefficiencies, and uncompetitive tax policies. Gratton stressed the need for better conditions to improve competitiveness, investment, and productivity.
Prime Minister Justin Trudeau has announced that Canada will retaliate with 25% tariffs on a range of US imports, including beer, wine, bourbon, fruits, and other products. Canada is also considering non-tariff measures related to critical minerals, energy, and other partnerships.
Trudeau stated that these tariffs could endanger US jobs, particularly in auto manufacturing, and increase costs for US citizens, including for goods crucial to national security like nickel, potash, uranium, steel, and aluminum.
Meanwhile, the CEO of the Aluminium Association of Canada, Jean Simard, expressed disappointment but said the industry was prepared. Simard highlighted the integral role of Canadian aluminum in the US economy, with 9,500 Canadian aluminum workers producing metal used by over 500,000 US manufacturing employees.
Simard urged governments to focus on addressing unfair Chinese trading practices rather than imposing tariffs on Canadian products, stressing that Canadian aluminum is critical to North America’s integrated industrial value chain. Imposing tariffs would only raise costs for US businesses and consumers, undermining efforts to reduce inflation.