All eyes are on the United States on Tuesday due to the presidential election, an outcome that is sure to have impacts on the wood and aluminum industries.
The forestry and aluminum industries are particularly sensitive to the customs tariffs imposed by the Americans.
The 10% increase previously imposed by Trump on aluminum generated much discussion between the National Aluminum Workers Union, the federal government and the American government to put an end to this tariff increase.
Now the industry fears another increase in the event that the Republicans win again, which would have significant consequences, among others, for the multinational Rio Tinto regarding the export of its products to the United States.
“It could perhaps limit us in exports because it is the United States, our big customer. Would that restrict us from sending ingots, coins or others? These are possibilities. One thing is certain, it is that we are afraid that he will reinstate tariffs whether for steel or aluminum. This is one of the fears of American protectionism,” underlines Donat Pearson, president of the National Union of Aluminum Employees of Arvida and Unifor.
“The danger and likelihood are greater of an upward shift with the return of Mr. Trump who sees tariffs as a negotiating tool rather than an end in themselves. It’s a way for him to achieve certain goals. This will make things very complex for several months, we don’t hope for years. We will have to work, mobilize with unions, workers and the governments of Canada and Quebec to make our points with the Americans,” adds Jean Simard, president of the board of the Aluminum Association of Canada.
Shared concerns
There is also a lot of excitement in the air in the forestry industry sector, which fears a re-election from the Republican Party because of its desire to put up additional tariff barriers.
The president of the Boisaco company emphasizes that this assertion by Trump worries all stakeholders, who fear that this form of inflation will interfere with the normal course of the economy.
The increase in export costs between Canada and the United States would have a significant effect on the lumber market and several negative consequences would result.
“Since there have been assertions from Mr. Trump for the Republican Party to the effect that there would be a desire to put up significantly additional tariff barriers, this worries all stakeholders. We are a little more worried and concerned about the results that there could be. That is to say, by putting up tariff barriers, it can mean that there are producers who will consider that it is better to sell volumes in Canada, so that interferes with the whole markets and that brings negative impacts on all markets,” observes Steeve St-Gelais, president of Boisaco, who hopes for a vision of openness and free trade.
It remains to be seen what the result of the vote between Donald Trump and Kamala Harris will be. Many companies are preparing for one or the other eventuality. The outcome will have to wait until the end.
