Trump tariffs could lead to potential job losses in Labrador mines, expert says

Threats of a 25 per cent tariff on goods exported from Canada into the United States have sounded alarms in industries around the world, including mining and those operating in Labrador.

Tamer Elbokl, editor in chief of the Canadian Mining Journal, told CBC Radio Friday that any kind of tariff would be bad news on his industry.

"It will have a huge impact. Not just on iron ore, but all minerals exported from Canada to the United States," Elbokl said.

Canada was the world's eighth largest producer of iron ore in 2023, with the majority of trade going to the United States.

That includes the iron ore that comes out of Labrador, which for years has been a key economic driver for the province. Data from Statistics Canada shows the province exported $430 million of mineral products to the United States in 2022.

Elbokl said a tariff would also impact nickel. About 40 per cent of Canada's nickel by volume is exported to the United States.

"That nickel is also needed for the green transition," he said. "Any tariff imposed on nickel or iron ore, any mineral exports to the US, will increase the costs for the manufacturer."

Nickel is a key mineral in the development of car batteries, including those in electric vehicles. 

Vale, who own the Voisey's Bay mine in northern Labrador, signed a supply deal with Tesla in 2022 to supply low-carbon nickel to Northvolt AB, a Swedish battery manufacturer and the largest integrated battery maker in Europe.

Elbokl said that if the cost of nickel was to rise from imposed tariffs, it could disrupt the supply chain and force companies like Tesla to become more reliable on less favourable sources of nickel.

"If the cost becomes higher for Tesla, they will certainly seek a better source for nickel, and they already have some many other sources," he said. "This will lead, eventually, to potential job losses and reduced economic activity in the regions such as Labrador and other regions in Canada who are dependent on mining jobs."

In the House of Assembly on Monday, Labrador West MHA Jordan Brown questioned what the province was doing to ensure business isn't majorly impacted by potential tariffs.

Industry Minister Andrew Parsons said he's heard concern from Labrador's mining operators loud and clear.

"The reality is that it would be a significant impact on us. What I can say is that we are constantly looking at opportunities abroad," he said.

Premier Andrew Furey has been vocal in calling for regional industry to not be forgotten as part of international trade negotiations, telling the House his government will continue to work to get that message to people on both sides of the Canada-U.S. border.

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