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WASHINGTON \u2014 An expert in critical minerals told U.S. senators Canada will be a key ally in efforts to reduce America\u2019s reliance on Chinese supply \u2014 after President Donald Trump spent months claiming the United States doesn\u2019t need anything from its northern neighbour.<\/p>\n
Gracelin Baskaran, director of critical minerals security at the Center for Strategic and International Studies in Washington, D.C., told the Senate finance committee that the U.S. only has 1.3 per cent of the world\u2019s rare earths.<\/p>\n
\u201cThe uncomfortable truth is we are not going to do this alone,\u201d she said.<\/p>\n
The hearing on trade in critical supply chains also included experts in semiconductors, medical technology and soybean farming who spoke about the ways Trump\u2019s sweeping tariffs are affecting their industries.<\/p>\n
Rare earth elements are used in the manufacture of electric vehicles, powerful magnets, smartphones, fighter jets and submarines, among other products. China, however, has long dominated the global industry, particularly in processing rare earth minerals.<\/p>\n
Trump has said he wants the United States to lead the global critical minerals trade but has been sending conflicting messages about how he expects the U.S. to achieve that goal.<\/p>\n
He signed a controversial executive order to pursue deepsea mining and in April launched a trade investigation that would be a precondition for hitting processed critical mineral imports with tariffs. Trump forced Ukraine to sign a critical minerals agreement in exchange for continued U.S. support in its defence against Russia\u2019s aggression.<\/p>\n
When Trump escalated the trade war between the world\u2019s two largest economies in April with massive tariffs, China responded with retaliatory duties and export restrictions on various critical mineral exports to the U.S., causing anxiety throughout supply chains.<\/p>\n
The U.S. \u201cfaces a severe level of vulnerability in its access to minerals,\u201d Baskaran said, adding that imposing sector-specific duties on ore imports would make it too expensive to develop processing capabilities in the United States. Tariffs on countries that have critical minerals geographically unavailable to the United States could also hinder American industry as China works to further its influence, she said.<\/p>\n
Trump implemented a 10 per cent universal tariff on nearly all countries in April, saying he\u2019d allow 90 days for nations to make a deal.<\/p>\n
He slapped 25 per cent economywide duties on Canada and Mexico the month prior, then partially walked them back a few days later for imports compliant under the Canada-U.S.-Mexico Agreement on trade, called CUSMA. Trump also imposed tariffs on steel, aluminum and automobiles.\u00a0<\/p>\n
Canada has 34 critical minerals and metals and Canadian officials have been cycling through Washington for months making the case that partnering together is a better strategy to push back on China. Ontario Premier Doug Ford called it \u201cFortress Am-Can,\u201d while then-energy minister Jonathan Wilkinson called for a resource alliance.<\/p>\n
Canada and the U.S. Department of Defense already have a co-investment deal to accelerate Canadian mining development and strengthen critical minerals supply chains.<\/p>\n
Trump, meanwhile, has repeatedly claimed that the U.S. doesn\u2019t need anything from Canada.<\/p>\n
\u201cWe don\u2019t need their Cars, we don\u2019t need their Energy, we don\u2019t need their Lumber, we don\u2019t need ANYTHING they have, other than their friendship,\u201d Trump said in a post on social media before meeting with Prime Minister Mark Carney in Washington recently.<\/p>\n
Sen. Maggie Hassan, a Democrat from New Hampshire, told the hearing that Canada has an abundance of critical minerals and is co-operative with the U.S.<\/p>\n
\u201cInstead of working with Canada on critical minerals trade, the president has targeted Canadian imports with truly reckless tariffs while making concessions to the Chinese government to try to access their mineral reserves,\u201d she said.<\/p>\n
When asked if the Trump administration should prioritize trade with Canada, Baskaran said \u201cCanada is going to be one of our strongest allies if we are going to reduce reliance on China.\u201d<\/p>\n
Baskaran said the critical minerals sector was already integrating between both countries. Canada\u2019s uranium reserves are 10 times larger than America\u2019s and the U.S. is increasing its capabilities for enrichment, she said.<\/p>\n
Canadian companies refine zinc produced in the United States, creating germanium used in American manufacturing.<\/p>\n
\u201cGiven the mining, refining and manufacturing, they are so vertically integrated,\u201d Baskaran said. \u201cWe will not be able to do it without strengthening our relationship with Canada.\u201d<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n