The United States imports about half a million metric tonnes of aluminum from British Columbia.
On Monday, U.S. President Donald Trump imposed 25 per cent tariffs on all steel and aluminum imports into the United States, including those from Canada and Mexico.
“To get a smelter online, it’s five or six years,” B.C.’s Minister of Housing and Municipal Affairs Ravi Kahlon told Global News.
“And so that means consumers in the U.S. are going to see a 25-per cent increase in everything for the next four years. And so it’s hard to understand how that policy will help Americans or anyone that’s been doing, you know, fair trade with the U.S.”
Kahlon, who spoke to Global News before Trump made the official announcement on tariffs, said despite what happens, B.C. is prepared.
“We have been doing a lot of work with the premiers. Premier (David) Eby has been working with premiers across the country on how we can work together to respond effectively, be targeted, be thoughtful on what we can bring forward so that we can send a clear message that we’re not going to be bullied here in British Columbia.”
The Rio Tinto Alcan aluminum smelter in Kitimat, B.C., produces some of the lowest-carbon footprint aluminum in the world. It employs more than 1,500 people.
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According to the organization, aluminum is found in products such as jet engines, electric vehicles and mobile phones. Analysts have predicted that the use of aluminum in lightweight cars and trucks in North America will increase by about 30 per cent from 177 kilograms per vehicle in 2015 to 227 kilograms in 2025.
“We’ve been working with our partners, in particular Rio Tinto and others from the moment that threats were even suggested,” Kahlon said.
“And so there’s a lot of work happening behind the scenes. Some of it takes a little bit of time, but our partners have been making plans to move our product to other jurisdictions. There are other places that do want our resources, and especially when it comes to aluminum.”
Kahlon added that they will find other markets for B.C.’s products and while it might have an impact in the short term, the government does think that they will be able to open up interprovincial trade and move products easier.
It is unclear if B.C. will respond by imposing tariffs on the United States but Kahlon said Canada is stronger when all the provinces work together.
“We know the impact of steel in particular is going to have a big impact in Quebec and Ontario, and we want to stand in solidarity,” he said.
“We’re going to stay with Ontario and Quebec and other provinces because we’ve got to hang together. And so the premier has been clear on that and we’ll see where the conversations go.
Eby will be part of a trip to Washington, D.C., leaving on Tuesday, to make the case to lawmakers on the effect these tariffs could have on residents on both sides of the border.
Kahlon said Eby met with executives at Rio Tinto previously and they assured the premier that they will be able to find other markets for their products.
“There is a demand in the world for this and in particular from British Columbia,” Kahlon said
“We do produce some of the lowest carbon products in the world and there’s still a demand for that. And so there was a high level of confidence from Rio Tinto, the team, that they would be able to pivot to other markets. And again, our product, which had been going to the U.S., not entirely, but a lot of going to the U.S., can find other markets fairly quickly.”
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