CTV News Toronto’s Sean Leathong visited a factory in Brampton that sends over $100 million worth of zinc oxide to the U.S. each year.
In Brampton, a factory unloads refined zinc by the tonne, producing a vital material embedded in countless daily-use items. Zochem, North America's largest zinc oxide manufacturer, generates over $100 million in exports to the U.S. annually.
The company, headquartered in Tennessee, has operated its Brampton plant for five decades, with Zochem acquiring it a few years ago. The facility exemplifies the close economic ties between Canada and the U.S., even as former President Donald Trump’s proposal of a 25% tariff on Canadian and Mexican goods looms large.
“We’re a manufacturer of high-quality French process zinc oxide,” said Zochem President and CEO Mohit Sharma to CTV News Toronto. “It’s found in tires, rubber, agriculture products like animal feed and fertilizer, pharmaceutical items such as multivitamins, sunscreen, diaper rash cream, and much more.”
The process begins in northwest Alaska, where zinc is mined. It is then refined in Trail, British Columbia, before being transported by rail to Zochem’s Brampton plant to produce zinc oxide. The finished product is shipped primarily to U.S. customers.
Canada exports many unfinished goods like zinc oxide, steel, and aluminum to the U.S., where they are further processed into finished products such as automobiles. Should the proposed 25% tariff take effect, these additional costs could eventually trickle down to consumer goods on store shelves.
“We work with every tire company you can name, globally recognized pharmaceutical firms, food additive companies, and even the oil and gas sector,” Sharma said.
Navigating a Trade Dispute
Trump has hinted at introducing new tariffs at the Canadian and Mexican borders, possibly as early as February 1. Flavio Volpe of the Auto Parts Manufacturers Association describes the situation as “a fight amongst partners,” highlighting its counterproductive nature.
Jean Simard, President and CEO of the Aluminum Manufacturers Association, views the instability as an opportunity to strengthen Canada-U.S. collaboration, particularly regarding continental security. “We need to go beyond tariffs and address the root issues,” he stated.
Catherine Cobden, President and CEO of the Canadian Steel Producers Association, pointed to the joint Canada-U.S. tariffs on Chinese steel as an example of successful cooperation. She believes the trade dispute could bolster North American steel trade and exclude unfairly traded products from overseas.
Amid this uncertainty, Zochem and other manufacturers are left bracing for potential impacts. “There’s a lot of waiting and seeing,” Sharma admitted. “A 25% tariff on all U.S.-bound products seems like a heavy burden, even for Americans.”
