N.L. industries still grappling with how tariffs will affect them, ministers say

Many industries in Newfoundland and Labrador are still grappling with how sweeping tariffs from the United States will affect them.

Finance Minister Siobhan Coady says it's being considered as the province prepares its 2025-26 budget.

"I will anticipate that there will be impacts in the next year, but I can't tell you exactly what those impacts will be at this point in time," she told reporters Wednesday.

The mining sector is one area where uncertainty looms.

Each year, the province exports billions of dollars worth of minerals like iron ore, copper and nickel. Much of the iron ore is shipped to Europe and Asia, but approximately one-third of those nickel exports is destined for the U.S.

Industry, Energy and Technology Minister Andrew Parsons says he believes the province's mining and oil sectors are somewhat insulated from the threat of tariffs, but it's too early to tell what kind of impacts they could have.

Mining is less sheltered, he says, but the province and industry leaders remain in conversation as markets become increasingly volatile.

"What they're doing in many cases is letting us know the facts of what they do and how they do it and who they're doing business with," Parsons said. 

"Our job is then to continue to bring that message, via the premier primarily, to lawmakers in the States. To people in the States. To decision makers."

Rio Tinto, owner of the Iron Company of Canada, which operates a mine in Labrador City, declined an interview request. But the company said in a statement that it is working closely with U.S. customers and trade associations on both sides of the border to minimize the impact of tariffs.

When it comes to industries like oil, Parsons said the province is more sheltered — thanks to it not being landlocked like other provinces or reliant on pipelines.

The oil and gas industry accounts for 22.8 per cent of the provincial GDP. Speaking with CBC News in January, Parsons said just about one-third of exported oil goes to the United States.

But, as a net importer of oil, Parsons said he believes the U.S. will be hurt more by the tariff.

"I think that the American public won't understand until they feel the pain. And they will. They will feel this in their wallets," he said on Wednesday.

While it's too early to tell what kind of budgetary impact the tariffs will have, Parsons said government is prepared to support industry of any kind.

"We had a serious downturn in the oil industry, we were there to support them. COVID hit, we were there to support business along the way. We will be there now."

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