Network believes trade issues have created an opening for Indigenous communities and the government to advance major projects

The Indigenous Resource Network (IRN) is concerned about the recent decision of the U.S. administration to impose 25% tariffs on Canadian goods imported into the United States. Although the administration has granted reprieves for certain goods, the tariffs and the animosity this creates has sparked Canadian retaliation with counter-tariffs. The Network believes these measures are very detrimental to our integrated North American resource economy and will end up hurting both countries.

We believe the added costs of tariffs will impact resource industry supply chains and may negatively impact resource projects and partnerships. We are concerned Indigenous resource workers and businesses that are already vulnerable will face reduced economic activity and layoffs.

Any decline in Indigenous economic activity will negatively impact Indigenous partnerships in the mining, forestry, and energy sectors, reduce royalties for First Nations and Métis communities under resource revenue-sharing agreements, and affect Indigenous resource employment across Canada. For example, Indigenous-led forest ventures and forest industry projects involving Indigenous workers will have the negative impact of tariffs made worse by increased U.S. duties on softwood lumber.

As government decision-makers currently discuss and implement tariff policies, IRN urges them to consider the impact of resource industry engagement on Indigenous workers, families, and communities. Indigenous resource workers and businesses stand to face significant losses if tariffs – especially if they are prolonged – lead to reduced resource activity.

Politicians and policymakers should know how resource sector involvement has been transformative for many Indigenous workers and families. Indigenous people are better represented in the resource sector. While they represent 3.9% of the Canadian workforce overall, they are 6.9% of the oil and gas workforce, 10.8% of the mining workforce, and 9.2% of the forestry workforce, based on data from the Labour Force Survey (2019-2021, LSF).

According to the LSF, Indigenous workers in oil and gas extraction made 2.2% more in average weekly wages than the average Canadian oil and gas worker in 2021. In contrast, across all industries in Canada, Indigenous workers earned 7.6% less than the national average. Furthermore, the oil and gas sector helped to eliminate the wage gap.

The LSF shows that the extractive resource sector, such as oil and gas extraction, provides the highest-paying wages for Indigenous workers in Canada. The census found Indigenous people working in the oil and gas extraction sectors make on average around $140,000 per year, which is almost three times more than the average Indigenous worker who makes $51,000 per year on average. It also found Indigenous workers who work in mining earn around $93,000 per year, and $56,000 per year for those in forestry.

The Network also recognizes that talks of tariffs and counter-tariffs has changed the conversation amongst Canadians and the Municipal, Provincial, and Federal governments about resource development and major projects in Canada. Canadians want to reduce their reliance on the United States in this charged trade war. Now, more Canadians are becoming more supportive of Canadian-owned pipelines, LNG projects, and large-scale mining developments. We believe governments at all levels must ensure Indigenous communities participate in all discussions about building major projects. We think this current state of affairs could encourage mainstream governments and Indigenous communities to adopt clear, predictable policies in a collaborative spirit to move projects forward.