When it comes to responding to U.S. tariffs, a “measured approach” is the best response, the new president of the Ontario Mining Association told a Sudbury audience last week.
Priya Tandon said there's no need to "come out with guns blazing," but at the same time, it is also a good opportunity for the mining sector to explore new markets.
Tandon was speaking in Sudbury on Feb. 13 at the annual general meeting of MineConnect, the Sudbury-based organization that represents and advocates for Ontario’s mult-million-dollar mining supply and services sector.
Tandon said no one in mining was pleased to hear about the prospect of 25-per-cent tariffs put out by U.S. President Donald Trump last month — which is now in a 30-day pause — but she said a survey of OMA members shows that Ontario should proceed with caution.
"The common theme I'm hearing from all of our members is we need a measured approach. We shouldn't come out guns blazing,” Tandon said. “So many of our operations are integrated with the U.S., and I know that applies to the supply and service sector as well. So we value the longstanding ties with the U.S. We're absolutely concerned that the tariffs threaten our members.”
She said the threat is real and has the potential to seriously disrupt Ontario's economy and break supply chains that are vital to stability and security, not to mention the actual harm to companies and workers.
Tandon said now is a good time to explore other markets besides the U.S. regardless of how large and lucrative the American marketplace is.
"We shouldn't let our guard down, and we have to keep up our advocacy,” she said. “So as Ontario mineral producers emphasize our strong trade and security links with the U.S., we also understand the importance of exploring diversified markets in response to potential uncertainties with our key ally.”
She added that while the federal and provincial governments have been solid supporters of the push for critical minerals, Tandon said there needs to be more than nice words from government ministers.
"In my view, we need to see mining declared as a strategic priority sector across all government ministries. I used to be at one of them (Ministry of Northern Development and Mines),” Tandon said. “We want to ensure that ministries are not operating in silos, and when a mining project or issue in the sector arises, all of government should be seized with a solution."
Len Gillis covers the mining industry, along with health care, for Sudbury.com.