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Trump’s steel tariffs will hit BC hard

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From Resource Works

BC is a huge source of mettalurgical coal, which is used to make steel.

US President Donald Trump’s announcement of 25 percent tariffs on imported steel will send shockwaves through many industries but one of the hardest hit will be British Columbia’s coal industry. As the largest exporter of metallurgical coal in Canada, B.C. relies heavily on global steel production and these tariffs will reduce demand, destabilize prices and disrupt supply chains.

Unlike thermal coal used to generate electricity, over 95 percent of coal mined in British Columbia is metallurgical coal or coking coal. This coal is used to produce coke, a carbon rich fuel used to remove oxygen from iron ore in blast furnaces. Steel production is a big part of global industrial activity and B.C.’s coal industry exists because of that demand.

According to provincial data coal is B.C.’s most valuable mined commodity, generating billions of dollars in revenue each year. B.C. coal is exported mainly to Asian markets like Japan, China, South Korea and India but the US steel industry has been a customer too. A reduction in US steel production due to tariffs could disrupt global steel trade flows and reduce demand for metallurgical coal from B.C. miners.

Trump’s latest 25 percent tariffs on all steel imports is a repeat of what happened in 2018 when similar tariffs were introduced. At that time the tariffs increased costs for US manufacturers and led to retaliatory tariffs from Canada and other trade partners. The economic impact was big – Canadian steel and aluminum producers lost business and retaliatory tariffs were imposed on a range of American goods. The 2018 tariffs also didn’t revitalize US steel production which was 1 percent lower in 2024 than 2017 despite those protectionist measures.

This time the tariffs will hit even harder. Unlike 2018 when Canada and Mexico were eventually exempted after negotiations, this time Trump has said his tariffs will apply to “everybody”. That means the Canadian steel industry will once again be caught in the crossfire and with it the metallurgical coal industry that supplies it.

If Trump’s steel tariffs prevent U.S. manufacturers from importing steel due to higher costs, steel production will decline. That will mean lower global demand for metallurgical coal including B.C.’s high grade supply. B.C. coal miners are already facing challenges from environmental policies, competition from other jurisdictions and regulatory delays. A downturn in demand from steel producers could be the trigger for more mine closures or reductions in production.

Plus these tariffs could start another trade war. Canada retaliated in 2018 with tariffs on U.S. goods like orange juice and whiskey and similar measures may follow this time. The uncertainty will delay investment decisions in Canada’s mining sector especially for new projects or expansions that rely on stable steel demand.

The long term viability of metallurgical coal is already in question as the steel industry looks towards greener production methods like hydrogen based steelmaking. Sweden has already developed facilities that don’t require coking coal and while the transition to such technologies will take decades the latest trade disruptions could accelerate that shift.

Trump’s tariffs are meant to protect U.S. steel makers but history shows they often have the opposite effect, increasing costs for American manufacturers and economic instability for key trading partners. For B.C.’s coal industry the combination of declining steel demand, disrupted supply chains and potential trade retaliation puts the sector in a tough spot.

British Columbia’s coal industry is deeply connected to global steel production making it very exposed to Trump’s latest tariffs. The move will reduce demand for metallurgical coal, disrupt export markets and add more financial stress to the province’s miners. Given Trump’s track record on trade B.C. should prepare for economic uncertainty and look at diversification strategies to mitigate the impact of another round of U.S. protectionism.

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Trump reiterates desire to annex Canada after Trudeau admits plan is ‘real thing’

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From LifeSiteNews

By Clare Marie Merkowsky

Donald Trump reaffirmed his desire to annex Canada over the weekend after Trudeau was overheard last week admitting that the threat is a ‘real thing.’

U.S. President Donald Trump reaffirmed his desire to annex Canada shortly after Prime Minister Justin Trudeau was overheard admitting that the threat is a “real thing.”  

During a February 9 Fox News interview with Bret Baier, Trump confirmed that Trudeau was correct: he does plan to absorb Canada into the United States and make it the 51st state.   

“Yeah it is,” Trump said. “I think Canada would be much better off being a 51st state because we lose $200 billion a year with Canada and I’m not gonna let that happen.” 

“Why are we paying $200 billion a year essentially in subsidy to Canada? Now if they’re a 51st state I don’t mind doing it,” he continued.  

While it is true that Canada has a trade surplus with America, Canadian economists have argued that the figure is much lower than $200 billion and that if energy is excluded, the U.S. actually runs a trade surplus with Canada.

Trump’s reaffirmation of his goal to absorb Canada comes after a microphone left on at the Canada-U.S. Economic Summit overheard Trudeau admit that Trump’s threat to take over his northern neighbor is a “real thing.” 

“I suggest that not only does the Trump administration know how many critical minerals we have but that may be even why they keep talking about absorbing us and making us the 51st state,” Trudeau reportedly said. 

“They’re very aware of our resources, of what we have, and they very much want to be able to benefit from those,” he continued. “But Mr. Trump has it in mind that one of the easiest ways of doing that is absorbing our country, and it is a real thing.” 

While Trump’s comments were initially passed off as a joke by many, his persistently referring to Canada as the “51st state” and threatening to use “economic force” to overtake Canada has been met with bipartisan blowback from Canadian officials.  

Conservative Party of Canada leader Pierre Poilievre, a frontrunner for prime minister in the next election, has had choice words for Trump, vowing that Canada will “never” become a U.S. “state.”  

However, Trump’s threats seem to have some force behind them regardless of public opinion polling, with the president reneging on a 25% tariff on Canadian imports just hours before they were set to go into effect. The tariffs have not been ruled out, but merely paused for 30 days while the two governments work toward a solution.   

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Canada: It’s Time to Stop Holding Ourselves Back – Lynn Exner

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From Energy Now

By Lynn Exner

For decades, Canada’s provinces have behaved like crabs in a bucket—pulling each other down instead of lifting each other up. Instead of working together to build a stronger economy, we’ve allowed outdated trade barriers, regulatory red tape, and political infighting to stifle our own potential.

 

In my work advocating for Canadian resource development, I see it all the time. Canada has everything the world needs—energy, minerals, lumber, food, and more. But instead of ensuring our own domestic economy is strong and efficient, we’ve made it harder for businesses to grow, both within our borders and beyond them. Instead of celebrating and capitalizing on each other’s strengths, we have spent too much time competing internally, blocking opportunities, and making it difficult to trade internationally and within our own country.

That might have been tolerated in the past, when global trade was predictable and our largest trading partners were reliable. But the world has changed. Tariffs are being weaponized, supply chains are shifting, and countries everywhere are prioritizing their own industries.

If Canada wants to remain competitive, we need to start acting like a country—one with an internal economy that functions as smoothly as our external trade agreements.

The good news is that momentum is finally building to address this issue. Canada’s leaders are talking about dismantling interprovincial trade barriers—something that should have happened long ago. The challenge now is to make sure that this talk turns into action. It has been suggested it could take as little as 30 days. We can’t afford another decade of stalled negotiations, watered-down agreements, and excuses for inaction. It’s time to demand real change and hold our leaders accountable to follow through.

Every region of Canada produces something the rest of the country and the world need. Alberta’s oil and gas, Saskatchewan’s potash, Ontario’s manufacturing, Quebec’s hydroelectric power, British Columbia’s ports, and Atlantic Canada’s fisheries—these industries are the backbone of our economy. They should be supported, expanded, and celebrated. Instead, businesses and workers trying to move goods, services, and expertise across provincial lines face obstacles that weaken our ability to compete globally.

One of the most common-sense solutions is a National Energy and Resource Corridor—a dedicated infrastructure network that allows for the efficient transport of energy, minerals, and other critical resources across the country. Instead of every project facing jurisdictional battles and costly delays, a coordinated, pre-approved corridor would streamline trade and investment, ensuring that Canadian products reach both domestic and international markets without unnecessary obstacles. It would also provide a foundation for future development—whether in oil and gas, renewable energy, or critical minerals—giving businesses and investors the certainty they need to support long-term growth.

We see the need for this in our supply chains, where businesses deal with costly delays just trying to move products between provinces. We see it in our labour markets, where skilled workers face unnecessary barriers to working in other regions of the country. And we see it in national infrastructure projects that could benefit all Canadians but get tangled in red tape.

These inefficiencies cost our economy billions of dollars every year—money that should be driving investment, innovation, and job creation instead of being lost to unnecessary restrictions.

 

In normal times, this would be frustrating. In today’s economic and geopolitical climate, it’s reckless. The global marketplace is shifting, and Canada must be ready to meet the challenge. Instead of being held back by internal divisions, we need to work together to make Canada a stronger, more self-sufficient, and more competitive trading nation.

We’ve proven that cooperation is possible when it’s absolutely necessary. Now, we need to treat it as a permanent priority, not just a temporary fix during a crisis. This is not just about economic efficiency—it’s about Canada’s ability to stand strong in a changing world.

There is no reason why a Canadian business should have to navigate different rules and restrictions just to expand into another province. There is no reason why a worker should have to requalify to do the same job in a different part of the country. And there is certainly no reason why major projects that create jobs and economic growth should be stalled for years over jurisdictional disputes.

A crisis like this is a terrible thing to waste. The global economy is shifting, and Canada has a choice. We can cling to outdated provincial protectionism and regulatory inefficiencies, or we can remove these barriers and finally build a true national economy. We can keep acting like crabs in a bucket, pulling each other down, or we can recognize that our strength lies in working together. Instead of standing in each other’s way, we should be celebrating each other’s strengths and ensuring that every region of the country can contribute fully to our shared prosperity.

Canada has faced major challenges before, and we’ve always been at our best when we face them as a united country. Now, more than ever, we need to tap into that spirit—not just to fix today’s problems, but to prepare for whatever surprises the future holds. The time for provincial rivalries, excessive regulation, and economic inefficiency is over.

It’s time to break free from the bucket and move forward as a stronger, more competitive, and more resilient Canada.

 


Lynn Exner is a spokesperson for Canada Action, a volunteer-initiated grassroots group dedicated to promoting natural resource development and economic growth in Canada.

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