EMA Urges Trump Administration to Reverse Course on Tariffs on Imports from Canada and Mexico

Arlington, Va., Jan. 31, 2025 – Citing the extreme financial impact that would be caused, the Essential Minerals Association (EMA) is strongly encouraging the Trump Administration to refrain from implementing tariffs on imports from Mexico and Canada that the Administration is set to enforce on February 1.

“The minerals industry in North America has long operated with smooth and open borders that have allowed companies to efficiently move product between the United States, Canada, and Mexico for extraction and processing operations,” said Chris Greissing, EMA president. “Just over a week ago, the President issued a number of executive orders to help promote and strengthen the domestic production of a wide range of minerals critical to our economy. These proposed tariffs will only cause greater uncertainties and make it far more difficult for a company to justify investing in the United States. The United States must implement policies that strengthen our domestic supply of minerals as a first step to creating a resilient domestic supply chain.”

Today, during a press briefing, White House Press Secretary Karoline Leavitt announced the implementation of the tariffs with little detail about how they would be implemented and which industries would be affected. Imports from Mexico and Canada would be subject to a 25 percent tariffs, while imports from China would see a 10 percent tariff. Even if the minerals sector were exempt from these tariffs, the impact on suppliers and customers would still be crippling.

EMA member companies, like most in the manufacturing world, are heavily reliant on the open trade that exists throughout North America. The tariffs would cause prices to rise steeply across the economy. Estimates show that many companies would see an increase in costs in the tens of millions of dollars per year, if not worse. The tariffs, instead of strengthening the domestic mineral supply chain, would cause U.S. manufacturers to become more reliant on foreign sources, including from hostile nations.

President Trump’s executive orders sought to be a first step to drastically reduce the reliance the nation has on sources from foreign nations, who in many cases are hostile to the interests of the United States. Canada is the largest source of U.S. mineral imports, accounting for $47 billion in 2023. According to the Center for Strategic and International Studies, “a 25 percent tariff on Canadian mineral imports could cost U.S. off-takers an additional $11.75 billion.” Any retaliatory tariffs could cause Canadian manufacturers to source minerals outside the United States.

On the whole, EMA believes tariffs between the North American markets has the potential to jeopardize national security and severely weaken the domestic supply chain and economy overall.

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The Essential Minerals Association (EMA) is the representative voice for companies that extract and process a vital and beneficial group of raw materials and minerals, which are the essential ingredients for many of the products used in everyday life. EMA ensures that the voices of its member companies and the socio-economic benefits they provide – from mining to end-use products – are heard by government leaders as well as the general public. Visit essentialminerals.org to learn more.