The CEO of Teck Resources Ltd., Jonathan Price, strongly condemned the US imposition of tariffs on metal imports, calling the decision economically unsound and predicting inflationary consequences for the mining industry.
The tariffs, implemented by the Trump administration, were met with immediate criticism from Price, who spoke at a Toronto industry event. He argued that the decision lacked foresight and offered minimal benefits, characterizing the US economic policy-making process as lacking “adults in the room.” Price warned that the tariffs would inevitably lead to increased inflation across the mining sector. He further suggested that the move would incentivize companies like Teck to seek out customers in alternative markets outside the US.
Following the announcement of the tariffs, Teck Resources’ share price experienced a significant drop, falling to its lowest point in nearly a year. This decline mirrored a broader trend among Canadian metal producers.
Price revealed that Teck is actively exploring opportunities to redirect its zinc sales towards Asia, shifting away from the US market which currently absorbs roughly half of Teck’s zinc production. The company’s zinc mining operations are located in Alaska, with refining taking place at a Canadian smelter before the final product is sold to US buyers. To facilitate this strategic shift, Price explained that Teck is securing warehousing and port capacity to support increased exports to Asian markets. He expressed confidence in the company’s ability to find new buyers, anticipating price adjustments to reflect the changing market dynamics.
While zinc represents a significant portion of Teck’s US-bound sales, the company’s primary product is copper, the majority of which is already exported to Asian markets. Data reveals that the US market accounted for approximately 14% of Teck Resources’ total revenue in the previous year. This existing diversification towards Asian markets may partially mitigate the negative impact of the US tariffs on Teck’s overall financial performance. However, the company’s strategic pivot in zinc sales underscores the significant disruption caused by the tariffs and the proactive measures being taken by Canadian mining companies to adapt to the evolving global trade landscape. The long-term consequences of these tariffs on the North American metal markets remain to be seen.
