The Mining Association of Canada (MAC) has voiced strong opposition to the US tariffs on critical minerals, warning that these trade restrictions could disrupt supply chains and harm both nations’ economies.
The tariffs, announced by President Donald Trump on February 1, include a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China, citing national security concerns related to illegal immigration and drug trafficking. While Canadian energy resources will face a lower 10% tariff, the mining sector fears the broader economic consequences of these restrictions.
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Canada-US Critical Minerals Partnership at Risk
MAC President and CEO Pierre Gratton criticized the US tariffs on critical minerals, emphasizing that they contradict the long-standing Canada-US partnership on critical minerals. Instead of imposing trade barriers, he urged both governments to deepen cooperation in securing critical mineral supply chains.
Gratton stated:
“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. In 2022, 52% of Canada’s mineral exports—valued at more than $80 billion (C$120.45 billion)—were destined for the US.”
He further warned that the tariffs could disrupt mineral and metal supply chains, increasing costs for US businesses and undermining national security efforts.
Impact of US Tariffs on Critical Minerals in Canada’s Mining Industry
Canada’s mining sector is a major driver of the national economy, contributing C$161 billion to the GDP and accounting for 21% of total domestic exports. The industry supports 694,000 jobs both directly and indirectly, making it a key pillar of the country’s economic stability.
The MAC cautioned that Canadian mining companies may seek alternative markets and suppliers, potentially reducing the flow of critical minerals to US manufacturers. The association also called on the Canadian government to address internal economic barriers to strengthen competitiveness and safeguard domestic mining interests.
US Aluminium Industry Calls for Exemptions
The US aluminium industry has also voiced concerns over the US tariffs on critical minerals. Charles Johnson, President and CEO of the Aluminum Association, has called for an exemption for Canadian aluminium imports, stressing their importance to American industry and defense.
Johnson noted that aluminium is one of 11 critical minerals essential to US manufacturing and national security. He warned that tariffs on Canadian aluminium could weaken the US industrial base and give foreign competitors an edge.
“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,” Johnson stated.
“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.”
US Tariffs on Critical Minerals Could Weaken North American Competitiveness
The US tariffs on critical minerals are causing significant concern among Canadian mining and industrial leaders. Experts argue that rather than imposing trade barriers, both nations should focus on strengthening cross-border cooperation to secure critical mineral supply chains and support industries essential to clean energy, defense, and advanced manufacturing.
As Canada’s mining sector explores alternative markets, and US industries lobby for tariff exemptions, the long-term consequences of these trade measures remain uncertain. However, industry leaders on both sides of the border agree that greater collaboration—not restrictive tariffs—is the key to ensuring a resilient and competitive North American critical minerals supply chain.
