CF Industries is seen in the background in this News file photo. A number of industries with business in Medicine Hat are keeping an eye on the ongoing trade dispute started by U.S. President Donald Trump.--NEWS FILE PHOTO
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The corporate head of Goodyear tires says he is watching potential effects of U.S. tariffs on imported goods, but overall, they could benefit the company that has a large U.S. manufacturing base.
Cancarb, another major manufacturer with facilities in Medicine Hat, says it will be forced to adjust prices if a trade dispute between the United States and Canada advances.
Meanwhile, CF Industries said it will continue with low-carbon investments in the U.S. despite the potential for the month-old Trump administration to rescind support for environmental regulation.
Goodyear CEO Mark Stewart told an investors conference call last week that he sees major competition coming from low-cost “dumping” of tires from Asia. Stewart implied those would also be a tariff target, even as the Trump administration threatens to take on North American countries.
“The tier-one tire manufacturers, including Goodyear, source our volumes from factories located in all three USMCA countries (U.S., Canada and Mexico),” said Stewart while presenting the company’s fourth-quarter financial results.
“As you would all expect, we have been quite active in our discussions with government officials, emphasizing the significance of Goodyear having the largest manufacturing footprint in the U.S.
“In the meantime, we’re working across our operations to mitigate any potential near-term impacts of tariffs related to our Canadian and Mexican supply. As the tariff situation may be fluid and will be fluid, we’ll remain agile and execute efficiency.”
At Medicine Hat, more than 200 workers produce consumer tires at the Goodyear facility in Brier Park that celebrated its 60th anniversary of production in 2020.
The company’s Canadian division also has a consumer tire production centre in Napanee, Ont., and smaller production facility in Valleyfield, Quebec.
Cancarb, which produces carbon black for tire, steel and chemical applications, has notified customers that its prices would rise if tariffs come into effect.
About 20 per cent of the local plant’s production is sold into the U.S. That’s after years of consciously expanding into other markets, said Cancarb president Peter Donnelly.
“It is hard to gauge at this stage how much of that is truly at risk, but needless to say we are concerned as it is our largest market,” Donnelly told the News.
Earlier this month, Methanex stated that only a small portion of its global production flows from the Medicine Hat plant into the U.S. markets. Meanwhile its production in the U.S. rose dramatically last fall with commissioning of the expansion at Giesmar, Louisiana.
CF Industries also released financials this week, with officials highlighting its investments in lower-carbon production are set to come online, and demand will remain in the marketplace.
That comes as doubts arise over U.S. federal support for decarbonization and weigh on industries under the Trump administration.
“We’ll start collecting (U.S. tax credit) this year,” said executive vice-president Chris Bohn, outlining carbon capture projects at its Donaldsonville facility and planning for a new low-carbon greenfield plant, known as Bluepoint.
“We continue to asses the project against our light of global nitrogen market and customer requirements for carbon intensity and regulatory framework.”
Canadian Pacific Kansas City railroad officials said in its financial results that they see potential economic growth in the U.S. as offsetting any declines on its Canada to Mexico network.
