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Local politicians brace for now-deferred trade war threat

Greater Sudbury politicians were firing back on the cusp of a trade war kicking off between the United States and Canada on Monday before tariffs were deferred by at least 30 days
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Electric underground mining vehicle at a Vale property in Sudbury.

Should the United States proceed with tariffs on Canadian exports to the United States, Greater Sudbury would join the balance of both countries in facing its negative impacts.

Given Greater Sudbury’s status as a mining leader, the local economy might be hit even harder than some others, according to some political leaders Sudbury.com connected with.

While putting this story together with comments by local politicians on Monday afternoon, Prime Minister Justin Trudeau announced that the tariffs threat by United States President Donald Trump had been put on pause for at least 30 days.

With Trump citing illicit drugs crossing the border as part of his rationale for tariffs, Canada has pledged $1.3 billion to reinforce the border “with new choppers technology and personnel, enhanced co-ordination with our American partners and increased resources to stop the flow of fentanyl,” Trudeau said in a written statement.

Canada is also going to appoint a fentanyl czar, list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering, and sign a new intelligence directive on organized crime and fentanyl backed with $200 million. 

Sudbury.com connected with Sudbury Liberal MP Viviane Lapointe shortly after Trudeau announced that the federal government had, for at least 30 days, successfully staved off the 25-per cent (and 10 per cent for energy) tariffs Trump had threatened.

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Sudbury Liberal MP Viviane Lapointe speaks during a recent funding announcement. Tyler Clarke/Sudbury.com

Although she noted that the flow of fentanyl from Canada to the United States makes up a fraction of a single percentage of total fentanyl seized at the U.S. border and only approximately one per cent of migrants, Lapointe said the border security improvements are welcome.

“Anything that strengthens our border is good for Canadians, as well as Americans,” she said. “We’ve seen the devastation that fentanyl can have, so strengthening those borders is something we’re committed to doing and working with the U.S. government.”

Drawing experience from her time on the parliamentary committee on national defence, Lapointe added that countries around the world are looking at strengthening their borders in the midst of global unrest.

“It is something that we need to do, and those are wise investments for us to be making right now,” she said.

As for the still-looming threat of tariffs, she said it’s a “very harmful trade policy” in which “everyone loses."

“It’s harmful to the economy, it’s harmful to jobs and it affects people’s livelihoods,” she said.

Although Trump has claimed that the United States doesn’t need Canada, she noted that Canada supplies approximately half of the United States’ total nickel needs and is their No. 1 supplier of nickel alloy, which is integral in the defence sector.

There’s only one nickel mine in the United States, in Michigan, she added.

“What’s interesting is, they export all of their output to Sudbury. All of it, 100 per cent, to be refined because they have no refineries, and we ship it back to them and they sell it to American customers.

“There is a great reliance in the United States on Canada, and when it comes to the nickel refinery, it’s entirely dependent on Canada.”

In the meantime, Lapointe said that her office has been inundated with phone calls from people asking what they can do.

“What I’ve been telling people is buy Canadian, buy local and stand united, so support local businesses, support our local farmers and producers,” she said. 

Shortly after speaking with Sudbury.com, Lapointe issued a brief statement on social media, noting, “we must not let up on buying and supporting Canadian.”

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Mayor Paul Lefebvre speaks during a federal funding announcement at Tom Davies Square last month. Tyler Clarke / Sudbury.com

Political insights received prior to Trudeau’s announcement

Other comments with local politicians Sudbury.com secured took place prior to Trudeau’s announcement, but could remain relevant in the event Trump were to forge ahead with tariffs when the 30-day pause comes to an end.

“The U.S. is a net importer of 43 minerals from Canada, relying on us for 50-80 per cent of its needs, including the high-grade nickel found right here in Greater Sudbury,” Mayor Paul Lefebvre said in a written statement issued Sunday night.

“Disrupting this partnership with unnecessary tariffs is short-sighted and risks damaging a trade relationship that benefits both countries. These policies will have real consequences for our mining sector, our workers, and our local economy.”

Voices from within the United States will convince those in power south of the border to reverse the "disastrous policy,” Lefebvre added.

“We must make it clear that these tariffs are not just counterproductive; they threaten the very supply chains the U.S. depends on,” he said, throwing his support behind the provincial and federal measures undertaken thus far. He pledged to work with other mayors “to explore every available option to support our local industries, protect jobs and strengthen our communities during this challenging time.”

Although it was later delayed by at least 30 days, Trump had previously announced that effective Tuesday, the United States would impose 25-per-cent tariffs on Canadian exports to the United States and 10-per-cent duties on energy such as oil.

Ottawa was set to retaliate with 25-per-cent tariffs on $30 billion in goods originating from the United States effective Tuesday, and another $125 billion three weeks later, after consulting with industry.

(Lapointe told Sudbury.com that the funds derived from these retaliatory tariffs would go toward helping those Canadians affected by the United States’ tariffs.)

Ontario’s retaliation was to include Premier Doug Ford cancelling a $100-million deal with Elon Musk’s Starlink to provide satellite internet to thousands of Ontario homes and businesses, banning U.S. companies from provincial contracts and pulling American products from LCBO shelves. Ford has since indicated these retaliatory measures are on hold.

The trade war threat was a key rationale Ford used to explain why he was holding a snap election on Feb. 27, as the province needed a “stronger mandate” to tackle the trade war.

Sudbury Progressive Conservative candidate Max Massimiliano reaffirmed this point in conversation with Sudbury.com on Monday, noting that as “global leaders in mining supply services and technology,” all Greater Sudburians will be hit by a “big snowball effect.”

Ford was among the first political leaders to respond to the tariff threat, Massimiliano said, forecasting “intense negotiations” taking place on both sides during the coming days.

Citing Greater Sudbury as “the mining capital of the world,” he added, “we have a very, very direct connection to these tariffs.”

As the owner of Don’s Pizza, Massimiliano said even his business’s operations are expected to be impacted if tariffs came into play. Although he clarified the vast majority of the ingredients they use are Canadian, he anticipates a drop in customers due to the trade war stripping money from local incomes.

“I expect a drop in sales, and not just me but everyone; restaurants and anyone who has any sort of business,” he said, adding that although he’d absorb as much of the cost increases as possible, it’s difficult to forecast what might happen into the long term if tariffs remained in place.

“We need an elected representative who can stand up and get things done and help try to save our community with the party in power,” he said, adding that Greater Sudbury needs “a voice at the table.”

“I’m the local PC candidate, and the PCs will win the next election.”

While Massimiliano contends that Ford is the leader equipped to combat tariffs, his NDP political opponent in Sudbury, Jamie West, scoffed at this notion in conversation with Sudbury.com.

“Doug Ford has a history of not sticking up for people or making bad deals or selling out Ontario things to the States as it is,” he said, citing Starlink as an example alongside moving ServiceOntario to Staples outlets, Ford flying down to Texas in 2021 to meet with executives from 7-11, the greenbelt scandal and Therme Spa in Toronto.

“Doug Ford is not a guy who’s known for making great deals or standing up for workers,” West added. “I don’t trust him.”

West similarly dismissed the notion that Ford’s majority government needed an election mandate to combat tariffs.

“We’re in a crisis, Ford has been fishing around since last spring for an excuse to call an early election,” West said. “He hitched his pony to Donald Trump and the tariffs, but the reality is that if he was really concerned about protecting people from the tariffs, we would be in Queen’s Park working on this right now.”

West said he was working with The Council of State Governments prior to the provincial election call last week, to relay to American politicians the importance of Canadian mining operations.

Although Ford claims to be working “tirelessly” on combatting tariffs, West contends that a provincial election cycle doesn’t leave much time for anything else.

Nickel Belt Liberal candidate (and Ward 7 city council member) Natalie Labbée issued a written response to Sudbury.com’s inquiry in which she noted that although industry-heavy places like Windsor would be hit hardest, Greater Sudbury would also face disproportionate impacts due to five operating mines located within its boundaries.

“It's definitely going to impact inflation and interest rates, as well as negatively affect housing developments, which is something we can't afford to compromise right now due to the housing shortage we have been facing,” she said.  

“Here in Greater Sudbury, we are finally coming ahead with development and so many new building permits for multi-residential dwellings to help us catch up, and now this happens. It could potentially be jeopardous to our city in that regard, but I hope it doesn't impact us too much. The next few weeks and months are going to be a critical time for Canada to fight back."

Labbée contended that Trump’s trade war threats were never about fentanyl or border security, but “always about power, control and money.”

Premiers should be focused on working together, but she said Ford has not helped by calling an “untimely and unnecessary election,” which she called “irresponsible of him.”

Labbée said the Ontario Liberal Party is working to bring Canadian doctors and nurses back, and implementing a Fight Tariff Fund to “help businesses and the economy stabilize, focus on smart stimulus investment, exclude American companies from procurement opportunities in Ontario and eliminate interprovincial trade barriers and I fully support these initiatives."

On Sunday, Sudbury.com connected with Sudbury District Home Builders Association president Derek Cashmore, who expressed concerns that the uncertainty surrounding the tariff threat might stymie Greater Sudbury growth.

It remains to be seen how, or if, the trade war threat will affect major municipal projects such as the proposed downtown arena/events centre and Cultural Hub at Tom Davies Square library/art gallery project.

“The Mayor and city staff are monitoring the situation closely and expect to understand more as the situation unfolds in the coming months,” a message from the mayor’s office issued late Monday afternoon said.

“These are important projects to the community and continue to be a priority. The large projects are in the design phase and there will be opportunities to adjust the design if possible and if the situation warrants. These projects are also following a construction management model which offer the benefit of working with the contractor during the design phase to optimize efficiencies in layout and material choices.”

Tyler Clarke covers city hall and political affairs for Sudbury.com.

 



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