The Essential Minerals Association (EMA) released the following statement encouraging the Trump administration to refrain from implementing tariffs on imports from Canada and Mexico:
“While the EMA supports the administration’s efforts to strengthen our border security and limit the flow of illegal drugs into the country, we continue to encourage the administration to refrain from using tariffs to help accomplish this goal,” said Chris Greissing, EMA president. “The unintended consequences this could have to our economy could be devastating. We encourage Canada, Mexico, and the United States to come together to address the drug and border issues and avoid the significant impacts a trade war would cause.”
“EMA member companies, like most in the manufacturing world, are heavily reliant on the open trade that exists throughout North America. The tariffs would cause prices to rise steeply across the economy.“Estimates show that many companies would see an increase in costs in the tens of millions of dollars per year, if not worse. The tariffs, instead of strengthening the domestic mineral supply chain, would cause U.S. manufacturers to become more reliant on foreign sources, including from hostile nations.
“President Trump’s executive orders sought to be a first step to drastically reduce the reliance the nation has on sources from foreign nations, who in many cases are hostile to the interests of the United States.“Canada is the largest source of U.S. mineral imports, accounting for $47 billion in 2023. According to the Center for Strategic and International Studies, ‘a 25% tariff on Canadian mineral imports could cost U.S. off-takers an additional $11.75 billion.’ Any retaliatory tariffs could cause Canadian manufacturers to source minerals outside the United States.
“EMA believes tariffs between the North American markets have the potential to jeopardize national security and severely weaken the domestic supply chain and economy overall.”