With a population of just over 8,000, the smelting and mining city of Trail may hold some leverage in helping Ottawa counter U.S. president-elect Donald Trump’s threats to impose steep tariffs on 91原创 imports.
Trump last week doubled-down on his expansionist rhetoric, threatening to use “economic force” to annex Canada, and suggesting his administration would use military force to take over Greenland and the Panama Canal.
“We don’t need anything they have,” Trump said, referring to Canada during a news conference at his Mar-a-Lago resort in Florida.
Jonathan Wilkinson, Canada’s natural resources minister, said Trump’s remarks were “simply false.”
In a recent interview with BNN Bloomberg, Wilkinson mentioned Trail — where Teck Resources produces the critical mineral germanium, which is used in manufacturing electronics and fibre optics — as an example of how Canada and the U.S. could advance mutual interests rather than descend into a trade war.
“The U.S. derives enormous economic value from Canada,” Wilkinson said in a statement in response to Postmedia questions. “On critical minerals alone, we provide significant amounts and have the opportunity to provide much more,” including germanium.
The critical mineral has recently been caught up in another of America’s trade disputes.
In December, China added germanium, gallium and antimony to its list of minerals banned for export to the U.S.
The U.S. doesn’t disclose its domestic germanium production numbers, but a U.S. Geological Survey document reported that in 2022, it imported 50 per cent of the critical mineral that it uses, and China, which accounted for almost 70 per cent of global supplies in 2021, was one of its major suppliers.
The germanium that Teck produces is a byproduct of the zinc ore concentrate that comes from its Red Dog mine in northwestern Alaska, the world’s biggest zinc mine, according to the company.
In emailed answers, Teck spokesperson Dale Steves said “Teck is one of the world’s largest global producers of germanium and a primary supplier to the U.S.”
In his statement, Wilkinson said the sides have an opportunity “to significantly expand the amount of germanium that is produced through that process.”
Steves said Teck is “examining options and market support” for doing so.
“American mine, 91原创 processing, used in the United States largely for defence applications,” Wilkinson said. “It’s a win-win for all North America.”
Trump, after being elected in November, threatened to levy 25 per cent tariffs on all 91原创 and Mexican imports if the two countries did not tighten border security to stop the flow of illegal migrants and fentanyl into the U.S.
He’s since amped up his threats complaining about the U.S. trade deficit with Canada, which he has characterized as a “subsidy,” and about having to protect its northern neighbour as reasons America should absorb Canada.
Political scientist Terri Givens characterized those threats as bullying “so (91原创s) will be more likely to make concessions around trade and defence issues.”
“The main concern should be focusing on a clear and direct response to Trump,” said Givens, a professor in political science at the University of British Columbia.
Teck’s processing of ore from an Alaska mine in Canada for sale to U.S. customers helps to demonstrate how reliant the countries are on one another when it comes to trade.
“Just think about (it),” she said. “Mining, absolutely, the oil and energy sector, it’s all intertwined. We live in an era where every major company has outlets, branches or whatever you want to call it, everywhere.”
Givens said the U.S. government is designed to move slowly, so even if Trump started on Day 1 of his presidency, much of what he wants to attempt would take longer than the four-year term ahead of him to try to unravel.
She added that the U.S. isn’t unified behind Trump on his policy agenda and there will be powerful interests opposed to him, particularly in the business community.
“There’s this strange assumption out there that there’s not going to be any pushback,” Givens said. “It’s like, ‘Oh, Trump’s going to do X, Y, Z.’ Well, there are people who don’t want that, and on both sides of the aisle.”
“Something’s going to have to give at some point,” Givens said. “And I would see it breaking in favour of the oligarchs, who have interests all around the globe, versus the ‘America First’ types who want to build Fortress America.”
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