B.C. industry communities brace for effects of U.S. tariffs on metals

The B.C. town of Kitimat is preparing for the impact of U.S. tariffs on aluminum, which are set to take effect soon.

On Monday, U.S. President Donald Trump signed an executive order imposing 25 percent tariffs on steel and aluminum imports, starting March 12.

Aluminum is extracted at smelters like the one in Kitimat.

Mayor Phil Germuth says there is concern in his community, but not panic.

“There’s a thousand full-time workers at the smelter; Kitimat’s population is around 8,300. But also, that’s just the smelter. Now you have all the businesses that support the smelter, like maintenance, parts, and supplies. They are clearly the largest employer in the community; they’ve been here for over 70 years,” he said.

Owned by Rio Tinto, the smelter, alongside a hydropower facility in town, was one of the largest contributors to the province’s manufacturing GDP in 2023, according to the company.

On Monday, B.C. Premier David Eby said he’s confident Rio Tinto could find other markets for its aluminum.

“Rio Tinto and Teck and others are looking at new partners or selling their aluminum at higher prices to Americans. None of it makes sense to me, and I’ll be trying to take that message to the Americans in Washington, D.C.,” Eby told the media Monday on his way to the capital.

He and other Canadian premiers are trying to convince American leaders that tariffs will harm both countries.

Meanwhile, in Paris for a summit, Prime Minister Justin Trudeau said Canada would respond firmly to the tariffs.

“We will work with the administration and highlight that imports of Canadian steel and aluminum create thousands, if not millions, of jobs and support families across the U.S.,” said Trudeau.

Trump imposed 10 percent tariffs on aluminum during his first term.

Germuth says layoffs were avoided that time, and he’s hopeful the same outcome can be achieved this time as well.

“My best outcome, of course, is that the tariffs aren’t released and that everything goes back to normal, or if we do see them, Rio Tinto is able to keep production and find another customer,” he said.

In southern B.C., the Surrey Board of Trade says the tariffs will impact the city’s local manufacturing sector. The board notes that Surrey is home to the largest number of manufacturing industries in the province, with steel and aluminum being major exports across the southern border.

SBOT Spokesperson and Policy and Research Manager Jasroop Gosal says the tariffs will likely lead to job losses.

Before that, he says prices will likely rise.

“And then we might eventually see an issue with supply. Demand will still be there, but supply may not be, depending on how companies adjust and whether they’re able to source those goods or raw materials locally,” Gosal said.

He says the board is looking to the federal government for support in helping its members diversify their export portfolios.

“We try to give our members access to different markets and provide information on how to access those markets… And we need to ensure that the provincial and federal governments are supporting in that way,” Gosal said.

He also advocated for cutting “red tape” and regulations that affect the industries hit hardest by the tariffs.

In addition to the tariffs on steel and aluminum, Canada still faces tariffs on all goods entering the U.S., which were supposed to go into effect last week until Trump agreed to a 30-day pause.
On Tuesday, the White House confirmed that the two sets of tariffs will stack on top of each other, meaning a total 50 percent tariff on Canadian steel and aluminum, if the planned measures proceed.

—With files from the Canadian Press