First Nations are grappling with uncertainty and bracing for impact as the Canada-U.S. trade war escalates, with steep tariffs taking effect on some business sectors.
About 7.5 per cent of Indigenous small and medium-sized businesses are exporting and stand to suffer, said Shannin Metatawabin, CEO of the National Aboriginal Capital Corporations Association, though the ultimate impact is hard to predict.
“We don’t have enough data to really support understanding where Indigenous businesses are in the spectrum of trade,” Metatawabin said.
U.S. President Donald Trump began hitting Canada with tariffs, which are a government tax levied on imported goods, in early 2025.
British Columbia faces the highest consequences to the new 50 per cent tariffs on certain goods, causing concern among First Nations in the province that are involved in forestry.
John Jack, elected chief councillor of the Huu-ay-aht First Nations on Vancouver Island, said they are “potentially deeply impacted due to our heavy investment in the forestry industry.”
Those investments include its own company, HFN Forestry Limited, a 35-per-cent partnership with Western Forest Products on nearly 137,000 hectares of forest, and Iskum Investments, a First Nations consortium looking at building a second-growth focused mill.
“It is something that we’re deeply concerned by, given that the United States is such a huge portion of our current forestry revenues,” said Jack.
Jack said tariff impacts would affect Huu-ay-aht citizens, who benefit from the revenue generated by forestry.
“We pay for things like early childhood educators, we pay for things like daycare workers and trauma-informed counsellors and all of these things we do to help make our people’s lives better in a way that helps make our community stronger and contribute to B.C. and Canada,” said Jack.
Jack said many Huu-ay-aht citizens are also employed by the forestry industry, directly or indirectly, and are worried about their jobs.
“That uncertainty can play havoc on a family situation,” said Jack.
Jack said he is looking at opportunities to support B.C. and Canada in new trade relationships with places like Japan, South Korea and China for the forestry industry, and diversifying into things like seafood.
B.C. government data says 51 per cent of the province’s exports in 2025 went to the U.S., down from 54 per cent in 2023.
More than half of those exports were wood, pulp and paper, metallic mineral and energy products.
First Nations in B.C. hold the right to harvest more than 20 per cent of the province’s annual allowable cut, according to B.C.’s Ministry of Forests.
“Like any tenure holder or forestry business, First Nations are exposed to market uncertainty and reduced demand resulting from duties and tariffs,” said a statement from the department.
“That is why we are focused on standing up for the entire forest sector, including workers, businesses, communities and First Nations partners throughout B.C.”
Dallas Smith, president of the Nanwakolas Council, which represents six First Nations on northern Vancouver Island, said the new tariffs would greatly affect its investments in forestry.
“It’s really sad that Indigenous forestry and the involvement of it and the development of it really bears the brunt of the challenges we’re facing right now,” said Smith.
Four of the council’s member nations invested $35.9 million in the La-kwa sa mukw Forestry Partnership with Western Forest Products in 2024, which manages about 157,000 hectares of forest land on northeastern Vancouver Island.
“With the new 50 per cent tariffs, it’s really hammering our plywood industry, which is predominantly second-growth harvesting,” said Smith.
Smith said the slowing of the forestry industry will impact building infrastructure like housing in First Nations communities and the economic growth of nations.
Rising costs will impact remote communities
In Ontario, which would be hard hit by new tariffs on steel and automotive sectors, First Nations leaders are concerned about the potential impact of rising prices.
“We’re very disappointed, like all others that have been watching the trade war,” said Regional Chief Abram Benedict, who advocates for 133 First Nations that comprise the Chiefs of Ontario organization.
“We have a lot of uncertainty going forward in what that means to First Nations across Ontario, and frankly across Canada. It’s predicted that many commodity prices will go up.”
The Chiefs of Ontario and Nishnawbe Aski Nation warned last year sharply rising costs will exacerbate economic challenges and increase financial hardships, particularly for northern First Nations.
“It’s no secret that in many of our northern, remote communities, cost of living is already high,” Benedict said.
“This is inevitably going to drive those costs up even higher, which is going to have some really negative, adverse impacts.”
Ontario Premier Doug Ford has taken a hard line against Trump, incurring the U.S. president’s wrath in a social media post on Monday. At a news conference, Ford hit back by saying Ontario could cut off the flow of energy and critical minerals if the dispute worsens.
Ford referenced his government’s efforts to expedite mining by getting a road built to the Ring of Fire, an 8,000 square kilometre area in the James Bay lowlands believed to contain billions of dollars worth of minerals.
Benedict said despite the new tariffs, the message of First Nations remains unchanged: they must be duly consulted and properly included on any major project.
