Canada and Mexico have avoided the new 10% global tariffs issued by the US – but only because they have been targeted under previous measures.
Goods which comply with the United States–Canada–Mexico (USMCA) agreement continue to be exempt, but both countries remain in the US line of sight on tariff charges.
Much of the American tariff scheme on Canada will stay the same: a blanket 25% on all goods, except those under the existing free trade agreement. Energy and potash is tariffed at a lower 10%, while a 25% levy on Canadian steel and aluminium remains in place.
Phil Kornbluth, from Kornbluth Helium Consulting, said the latest announcement was good news for Canada’s helium producers.
“North American Helium, the largest Canadian helium producer by far, is the primary beneficiary, but other producers like Thor Resources, Canadian Helium and Weil Group will also benefit from avoiding tariffs,” he said.
North American Helium, which started production in July 2020, has drilled more than 100 wells to date. “We expect to invest significant capital in exploration and delineation drilling, as well as processing infrastructure over the next decade,” it said recently.
The company has nine production facilities onstream, with a total production capacity of approximately 210 MMcf/year of purified helium. It expects to grow that capacity further in 2025.
Weil Group is active in the US and Canada and operated prior projects in Colombia, South America and throughout the Philippines archipelago.
Canada remains in political limbo ahead of its general election on 28 April.
Prime Minister Mark Carney said, “We are going to fight these tariffs with countermeasures.”
