As Canada braces for American tariffs on Canadian-made steel and aluminum, the northern B.C. community of Kitimat is paying special attention with a sense of deja vu.
As the site of B.C.'s only aluminum smelter, the northern coastal community founded in 1951 with a current population of just under 9,000 exists because of the aluminum industry. The smelter, then owned by the Aluminum Company of Canada, started operation in 1954 and once employed close to 2,000 people.Now operated by Rio Tinto, headquartered in the United Kingdom and Australia, it employs 1,500 people directly or indirectly.
"It (aluminum) is the only reason why it (Kitimat) exists," Mayor Phil Germuth said. "It's a huge party of the community. It is the largest and the most stable employer in the region for 70 years."
According to figures from Rio Tinto released in 2024 as part of the smelter's 70th anniversary, the facility contributed $517 million to B.C.'s economy in 2023, employing some 1,500 directly and indirectly.
As such, Kitimat is especially tuned into Sunday's statement from U.S. President Donald Trump that the United States would impose tariffs of 25 per cent on all steel and aluminum entering the United States. The tariffs, confirmed today, (Feb. 10), and set to come into effect March 4, would also apply to Canada and Mexico, even though the United States last week paused threatened tariffs on all goods until early March.
Germuth said his community has been through this situation in the past. Canadian steel and aluminum were subject to U.S. tariffs between May 2018 and May 2019 during Trump's first term.
"I think we got through it fairly well," Germuth said. "Kitimat is very resilient. No doubt, there is concern, but no one is freaking out yet or anything. Everybody is being very reserved at this time. We have been through this before and we hope that we will get through it again."
But if Germuth struck a keep-calm-and-carry-on tone, he also acknowledged the significance of the industry to his community as well as neighbouring communities such as Terrace.
"Anything that could potentially affect the aluminum industry here would no doubt have a major effect on not just the economy of Kitimat, but both on the region and the province," Germuth said.
Germuth said he has reached out to Rio Tinto, but has not yet received a reply.
"We haven't had any discussions yet with other levels of government. This is of course just rolling out. So I have no doubt that they will be reaching out and having those discussions."
B.C. Housing Minister Ravi Kahlon said Monday afternoon (after Black Press Media had spoken with Germuth) that Premier David Eby recently met with officials from Rio Tinto, who indicated they will be able to find new markets for B.C. aluminum.
"There is a lot of work happening behind the scenes," Kahlon said. "Some of it takes a little bit of time, but our partners have been making plans to move our product to other jurisdictions."
He added that these discussions have revealed strong interest for B.C. products, especially when it comes to aluminum.
The United States currently imports about 3.5 million metric tons of aluminum with 0.5 million metric tons coming from B.C.
Kahlon said B.C. will act in solidarity with other Canadian provinces in response to the tariffs, once the tariffs have come into place.
"We will see where the conversations go, if the U.S. moves ahead with what President Trump has indicated," he said early Monday afternoon.
Kahlon acknowledged the uncertainty created by Trump is frustrating and challenging, but added that B.C. is prepared.
"We are not going to be bullied here," he said.
Kahlon also confirmed behind-the-scenes discussion about supporting impacted workers.
"Those measures have been agreed upon with the premiers and the Prime Minister, but those only will be implemented once we actually see the tariffs come in place and we are able to assess what the short-term impact will be," he said.
Conservative Party of B.C. Leader John Rustad said Monday morning the tariffs put Kitimat jobs at risk.
"So uncertainty is never a good thing and I know the people up there as well as people across the province are upset about that uncertainty and want to see some stability, so that they can continue to put food on the table and support their families."
Business organizations and unions have also responded. Tim McEwan, senior vice president of corporate affairs for the Mining Association of British Columbia, said any tariffs would be highly disruptive and detrimental for the Canadian and B.C. economy.
"The potential for tariffs on aluminum would not only harm Canadians, but ultimately hurt U.S. businesses and everyday Americans," McEwan said. "Canada and B.C. have the critical minerals and metals the United States needs to meet their technological, defence and national security objectives.91ÂãÁÄÊÓƵ
Marty Warren, national director for the United Steelworkers union, denounced the tariffs in a statement.
"We91ÂãÁÄÊÓƵ™ve been through this before and we know these kinds of reckless trade measures don91ÂãÁÄÊÓƵ™t work, and hurt workers, destabilize industries and create uncertainty across the economy on both sides of the border," Warren said.
Warren called on Ottawa to act quickly and forcefully with immediate counter-tariffs, enhanced worker and industry support and a firm commitment to use Canadian steel and aluminum in public infrastructure projects.
"If these tariffs move forward, the government must be ready to hit back just as hard and be ready to face the consequences of this new chapter in the crisis on jobs," Warren said. "For years, we91ÂãÁÄÊÓƵ™ve pushed for domestic procurement policies to ensure taxpayer dollars support Canadian jobs and industries."