With the ongoing trade war between Canada and the United States, there have been many sectors targeted by United States President, Donald Trump. One industry that is currently under watch is the trade on aluminum, which Trump has put a 25% tariff on all Canadian imports. Locally in the northwest, Kitimat’s economy, which holds hundreds of jobs at Rio Tinto’s smelter, is now under watch.
“Kitimat has been in this long boom and bust cycle, and the last thing we want to see right now is people losing their jobs,” said Skeena MLA Claire Rattee. “I believe that they’re going to do everything they can as a company to make sure that [job loss] doesn’t happen, but they really are relying on the government to take the steps necessary so that they don’t have any pressure on the company. They might have to adjust prices, risk losing customers that are seeking alternative suppliers. It could lead to significant employment concerns, which I am hoping is not the case.”
While Trump believes that America can create their own resources, history shows that Canada has been a longtime provider of aluminum for the United States, as they remain as America’s biggest source of aluminum at 3.2 million tons last year, according to the U.S. International Trade Administration. In 2024, Canada supplied 58% of the aluminum to the United States.
“They do import a significant percentage from Canada, so I am surprised that this is one of the industries being hit right now. It’s not going to boost U.S. production, because they’re just not there yet,” said Rattee. “They don’t have access to the same amount of low-cost power, and there would be a massive capital investment required for new plants. This affects so many different sectors like automotive, aerospace and appliances.”
According to Rattee, these tariffs may have a similar affect as the carbon tax, which has been a big topic in the upcoming federal election. But at the end of the day, the consumers will be the ones to feel the shift in the economy.
“The carbon tax is absolutely a tax, on a tax, on a tax. It affects everything, particularly those of us living up north. The people most impacted by something like a carbon tax are rural, remote, northern communities and Indigenous communities. We’ve seen that up north, it’s on the food that’s grown, it’s on the transportation to get the food to us. And it adds up, and those costs are passed onto the consumer. So a tariff is going to work the same, in theory.”