U.S. copper tariffs threat adds to Manitoba minerals global push

Europe and Asia are in the sightline of Manitoba’s mining industry as the United States threatens further tariffs.

U.S. President Donald Trump said Tuesday he’d slap a 50 per cent tariff on all copper imports. He didn’t announce a start date.

Manitoba was Canada’s fourth-largest producer of copper in 2023. The keystone province accounted for 2.4 per cent of production, or 12,000 tonnes, Natural Resources Canada data show.

Data on Manitoba’s recent copper exports to the United States wasn’t available by print deadline. Across Canada, copper and copper-based exports were valued at $9.4 billion in 2023.

“All tariffs are inherently harmful,” said John Morris, co-director of the Mining Association of Manitoba (MAMI).

He forecasts the new tax — and its related cost increase — will hurt Manitoba exports and U.S. manufacturers. Companies use copper to make electronics and appliances, among other things.

Should the tariff last, mining companies will look to sell in other regions, Morris predicted. Manitoba holds at least two copper mines: Hudbay’s Snow Lake operation and Vale’s plant near Thompson.

Copper isn’t the sole focus of either hub. The Snow Lake mine produces gold and zinc; it has a daily mill capacity of 5,300 tonnes. Vale oversees, primarily, a nickel mine.

Neither company answered questions about production and exports by print deadline.

“Critical minerals are a commodity with a global demand,” Morris said. “The issue is, we have established linkages to the United States economy.”

MAMI is creating a campaign to market Manitoba minerals globally. New tariffs didn’t spark the plan; the association received $1.5 million from the provincial government, and another $100,000 through the provincially-funded Manitoba Mineral Development Fund, this spring.

Targeted advertisements via social and traditional media should appear in the fall, Morris said. Europe and Asia will be the ads’ recipients.

Nineteen European ambassadors and high commissioners visited Manitoba in April. They showed interest in local minerals. Germany’s ambassador to Canada listed zinc, lithium and nickel as exports the country was eyeing.

“We’re working very close with the Manitoba government to ensure that we’ll have success going forward, with respect to exporting of our products,” Morris said.

The provincial government created a contingency for tariff relief in its most recent budget. It highlighted up to $300 million for businesses and farmers affected by tariffs, should 25 per cent across-the-board tariffs materialize. The funds haven’t been tapped; an across-the-board fee hasn’t appeared.

Still, copper is the latest export poised for a U.S. tariff. Levies on steel, aluminum and items outside the Canada-United States-Mexico Agreement on trade have been in place since March.

Canada placed 25 per cent tariffs on $59.8 billion worth of U.S. imports in retaliation, not including non-CUSMA compliant U.S.-made vehicles.

— with files from The Canadian Press

gabrielle.piche@winnipegfreepress.com