Ontario Pitches Trump on Mining Deals as Tariffs Loom

As the U.S. President-elect Donald Trump's administration prepares to take office, Ontario's mining sector is gearing up to pitch its critical mineral resources as a solution to the looming tariff threat. With a rich endowment of minerals like nickel, copper, cobalt, and graphite, Ontario is positioning itself as a reliable and secure supplier for the U.S. market, aiming to secure favorable trade terms and exemptions from potential tariffs.



Ontario's mining industry is a significant contributor to the province's economy, generating around $10 billion in revenues annually and supporting approximately 31,000 direct jobs and 47,000 indirect jobs. The sector is also a major player in regional development and value-add generation, with 77% of mining company GDP contributions staying inside the province. Ontario's mining companies are leaders in sustainability and environmental protection, with over three-quarters participating in carbon pricing schemes and adopting advanced clean technologies at higher rates than comparable industries.

To adapt to the Trump administration's priorities, Ontario's mining sector is emphasizing the role of critical minerals in job creation and U.S. strategic security. By highlighting the direct and indirect jobs created by the industry in both Canada and the U.S., Ontario can appeal to the Trump administration's emphasis on domestic job growth. For instance, Ontario's lithium and cobalt production can support the U.S. electric vehicle (EV) battery industry, creating jobs in both countries.

Moreover, Ontario can position itself as a trusted ally in ensuring secure supply chains for minerals essential to defense, energy, and technology. Ontario's nickel production can support the U.S. defense industry, while its lithium and cobalt exports can help secure the U.S. energy grid through battery storage. By emphasizing shared interests in North American energy independence and national security, Ontario can align its objectives with the Trump administration's strategic priorities.

To secure favorable trade terms, Ontario should prioritize direct trade discussions tailored to U.S. interests. Government proposals emphasizing mutual benefits, such as tariff-free mineral access and enhanced U.S. investments in Ontario's infrastructure, should be paired with active participation by Ontario-based companies. Joint ventures with U.S. firms in processing and refining operations can foster cross-border economic interdependence, making trade barriers less appealing to the Trump administration.

Ontario's mining sector can also attract U.S. investments in its mining and processing infrastructure, including defense-related funding. This can reinforce mutual dependencies and justify exempting critical mineral trade from tariffs. For example, Ontario could seek U.S. investment in its nickel processing facilities to support the U.S. defense industry, while also creating jobs in both countries.

In conclusion, Ontario's mining sector is well-positioned to adapt to the Trump administration's priorities and secure favorable outcomes in critical minerals trade. By emphasizing job creation, U.S. strategic security, and bilateral agreements, Ontario can leverage its critical mineral resources to mitigate potential U.S. tariffs and maintain favorable trade terms with its southern neighbor. As the U.S. President-elect Donald Trump's administration takes office, Ontario's mining sector is poised to play a crucial role in securing a stable and prosperous future for both countries.