The Mining Association of Canada (MAC) has condemned the decision by US President Donald Trump to impose tariffs on all Canadian products bound for the US, warning of severe economic and security consequences.

“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,” MAC president and CEO Pierre Gratton said in a statement.

“The imposition of tariffs on Canadian minerals and metals runs counter to American national security and economic interests.”

Gratton’s statement follows Trump’s announcement over the weekend of 25% tariffs on Canadian and Mexican imports and 10% on goods from China. The US would also impose a 10% tariff on all energy imports from Canada.

In 2022, more than half of Canada’s mineral exports – valued at more than $80-billion – were shipped to the US. MAC argues that tariffs will disrupt the flow of these resources, strain critical mineral supply chains, and increase costs for US businesses reliant on Canadian materials.

The decision marks a sharp turn in US-Canada trade relations, which saw significant cooperation in recent years. The two nations established the Joint Action Plan on Critical Minerals Collaboration in 2020 under the Trump administration, aiming to bolster North America’s supply of essential minerals.

Gratton urged the US government to reconsider its approach, emphasising that Canada remained willing to strengthen its critical mineral partnership with its southern neighbour. Instead of tariffs, Canada and the US should be focusing on deepening collaboration, he stated.

The Canadian mining sector is expected to explore alternative markets and suppliers, which MAC warns could have long-term repercussions for US industries. “US tariffs will lead Canada's mining sector to pursue new and deepen existing alternative markets, as well as alternative sources of inputs necessary for the continued operation of mining facilities. This will hurt US businesses,” MAC stated.

MAC also called on Canadian governments to address longstanding domestic economic challenges, including internal trade barriers, regulatory inefficiencies, and uncompetitive tax policies. “It is time for all governments to double down to create the conditions for improved competitiveness, investment, productivity, and prosperity,” Gratton said.

Prime Minister Justin Trudeau has announced that Canada would retaliate against the new tariffs with 25% levies on a raft of US imports, including US beer, wine and bourbon, as well as fruits and fruit juices. Canada would also impose tariffs on goods including clothing, sports equipment and household appliances.

Canada is also considering non-tariff measures, potentially relating to critical minerals, energy procurement and other partnerships.

Trudeau said that tariffs against Canada would put US jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities.

"They will raise costs for you, including food at the grocery stores and gas at the pump," the Canadian leader said, addressing US citizens.

"They will impede your access to an affordable supply of vital goods crucial for US security, such as nickel, potash, uranium, steel and aluminum."

Meanwhile, Aluminium Association of Canada CEO Jean Simard said, while disappointed, the organisation was expecting the tariff announcement and was ready for it.

"This situation will unfortunately impact workers and consumers in America with the immediate increase on the price of aluminium."

Simard said 9 500 Canadian aluminium workers were producing the metal that was processed, transformed and fabricated into parts, components, and everyday products by more than 500 000 US manufacturing workers, generating more than $200-billion in economic output in the US economy alone.

"Our economies are integrated because it makes sense, because it benefits workers, consumers, and communities on both sides of the border."

Simard said that governments' focus should rather be on addressing the negative impacts of unfair Chinese trading practices stemming from state subsidies on the entire aluminium ecosystem.

"These non-market policies and practices of the last two decades have hurt our workers and businesses, shuttered smelters, and made it harder for our responsibly produced metal to compete. Canada will not be a transshipment risk or a vector for trade practices that could harm our collective economic security."

The association believes that Canadian aluminium must be exempt of any tariffs, because of its strategic role within North America's integrated industrial value chain. "While the US produces, at best, one million metric tons a year of primary metal, it consumes six times that amount. Imposing tariffs will only raise costs for US consumers and businesses in the middle of inflation reduction efforts."