US President Donald Trump is focusing his efforts on the race for vital minerals, with Canada’s abundant reserves being a significant target. This comes as these minerals increase in global trade, used in various technologies like smartphones, electric vehicles, artificial intelligence, and modern military equipment. The US has been striving to decrease its dependency on China for these minerals and has been looking towards Canada as a reliable producer.
It is said that Canada has strategic mineral reserves that the US lacks. Trump is keen on speeding up this shift, even hinting at signing new executive orders to boost the production of these critical minerals in the US. However, Trump is also urging other mineral-rich nations to join his mission, even if it means threatening their sovereignty.
Canadian Prime Minister Justin Trudeau has expressed concern over Trump’s intentions, particularly his threats to annex Canada due to its valuable mineral resources. Trump has been open about his desire to acquire Greenland for its mineral wealth, citing national security reasons. He is also trying to forge an economic agreement with Ukraine, which would give the US access to its critical minerals in exchange for American support in peace talks with Russia.
Experts, such as Jose W. Fernandez, former undersecretary of state for economic growth, energy and environment, have criticized Trump’s tactics, stating that they hinder the fostering of positive trade relationships. The Canadian government has identified 31 materials as “critical,” including potash, aluminum, uranium, and titanium. The demand for these minerals has increased due to the rise of artificial intelligence, and Canada holds one of the world’s largest reserves of these elements.
The US has been trying to secure its supply chain for these minerals in an effort to reduce reliance on China. In 2022, the US created the Minerals Security Partnership, which Canada was the first to join. The partnership has led to investments in Canada and other mineral-rich countries, promoting dialogue and cooperation.
Despite fears of a trade war, cooperation between the US and Canada remains crucial for the prosperity of both nations. Ontario Premier Doug Ford has suggested that the US’s dependence on nickel from Ontario could be used as leverage in retaliation to Trump’s tariffs. Stakeholders at the Prospectors & Developers Association of Canada convention in Toronto have also stressed the importance of investing in critical mineral production and diversifying supply chains. They believe this is Canada’s time to capitalize on its wealth of resources.
