Trumpy with a chance of tariffs

In another recent interview on CBC Radio’s Labrador Morning, I mentioned that I was not surprised to see Trump slap on tariffs on steel and aluminum, as tariffs have been a talking point for months. The forecast has been “Trumpy with a chance of tariffs” for a while. This is déjà vu from what happened in 2018. Since its election in November, this U.S. administration has been threatening tariffs on Canada, Mexico, and on so many other countries. It is their strategy.

Tariffs on steel imports to the U.S. will “trickle down” the supply chain, impacting the mining sector in Canada. Canada is a major producer of iron ore and nickel (in Sudbury, Ont. and Labrador), which are major components in steel manufacturing, so the Canadian mining sector will eventually see some upheaval. The silver lining is to diversify our markets.

For the mining sector in Canada, uncertainty will dominate the forecast for the next few weeks. Following a short-lived standoff between the two allies, the U.S. and Canada have agreed to postpone the global imposition of 25% tariffs on each other’s imports for 30 days, as of Feb. 3, 2025.
For Ontario, mining is a cornerstone of the province’s economy and plays a pivotal role in Canada’s natural resources sector. Ontario is Canada’s largest producer of non-fuel minerals, accounting for approximately 25% of the country’s total mineral production. The province’s mining sector is at a critical juncture, with its success closely tied to U.S. trade policy. While the province has the resources and expertise to lead in critical mineral production, tariffs could undermine its competitive advantage, disrupt supply chains, and deter investment. Policymakers in both Canada and the U.S. must tread carefully, ensuring that trade disputes do not derail North America’s ambitions to build a secure and sustainable mining and manufacturing ecosystem.

Ontario’s mining industry will need to work closely with the federal government to push for exemptions or alternative trade agreements that safeguard its access to the U.S. market. Collaboration with American automakers and policymakers will also be key in reinforcing the importance of Ontario’s minerals in strengthening North America’s clean energy transition.

How can we alleviate the impact of tariffs on the mining sector in Canada and specifically Ontario? We need to adopt some proactive measures. The regulatory approval process for projects related to non-renewable natural resources should be led by the provinces and their regulatory bodies. Canada’s current regulatory approval processes for building large projects is a mix of overlapping federal and provincial oversight. Regulatory overlap creates uncertainty. Eliminating regulatory overlap is one way to improve efficiency. The federal government must respect that provinces are competent regulators and capable of ensuring environmental protection associated with development of their resources within their borders. In my opinion, the federal government should completely opt out of the mining permitting and regulatory processes. Read the law column on page 10 of this February/March issue for more insight.

Additionally, articles on pages 21 to 35 provide updates on mining in Ontario. Flip to pages 51 to 62 for articles on latest topics related to training and workforce in mining as well as history of mining in Canada.
If you are planning to attend the Prospectors and Developers Association of Canada (PDAC) 2025 convention in Toronto, Mar. 2-5, please visit our booth # 808 to pick up a hardcopy of this issue.
Finally, our April issue will tie-in BEVs, mine electrification, and de-carbonization. Editorial contributions can be sent to the Editor in Chief until Mar. 7, 2025.