Teck Resources Ltd.’s top executive warned that U.S. tariffs will “drive inflation up” throughout the mining industry and encourage companies to find customers in other countries — a move the Canadian miner has started to pursue.
Teck is looking to sell zinc to customers in Asia instead of the U.S. after President Donald Trump delivered on his threat to hit Canada and Mexico with sweeping import tariffs, Chief Executive Officer Jonathan Price said Tuesday at an industry event.
Teck’s zinc is mined in Alaska and then sold into the U.S. after being refined at the company’s Canadian smelter. About half of Teck’s zinc output last year went to the U.S.
“We have been reserving warehousing capacity, looking to reserve space in ports to export the metals to Asia,” Price said during a panel discussion at the Prospectors & Developers Association of Canada event in Toronto. “We will find buyers and prices will adjust.”
The U.S. accounted for 14% of Teck’s revenue last year, according to data compiled by Bloomberg. The Vancouver-based company mainly produces copper, though most of that metal is shipped to Asian markets.
Shares of Teck fell as much as 4.6% to $54.73 in Toronto, its lowest intraday price in almost a year.
Price warned that the U.S. tariffs will have far-reaching impacts to the mining industry, noting that “it will send inflation up throughout the entire system.”
The U.S. is making economic decisions “without adults in the room,” he said during the panel, making some of the most scathing comments coming from the industry so far. “There is little upside.”