Canada’s manufacturing sector, already targeted by earlier and ongoing U.S. tariffs on autos, steel, aluminum, and pulp and paper, faces a 'double tariff shock' due to new Canadian counter-tariffs. These measures, worth $28 billion, were imposed on U.S. imports on Sept. 8 in response to additional U.S. duties targeting similar-value Canadian exports, imposed on Aug. 22 after trade talks broke down. The report by Desjardins Group highlights that sectors like chemicals, machinery, electrical products, plastics, textiles, and alcoholic beverages will be hit by both U.S. and Canadian tariffs.
Specifically, electrical and equipment worth $12.8 billion, textiles worth $3.3 billion, and computer/electronic products worth $11.5 billion are at risk. The report notes that while some Canadian industries, like steel, may benefit from reduced demand due to existing U.S. tariffs, others will struggle with sourcing inputs domestically. Wholesale and retail trade could also suffer as consumers avoid price-increased products, affecting machinery, household goods, and consumer items.
The construction sector may face delays and cost increases due to tariffs on HVAC equipment, metal products, and motors. Jean-Jacobs advises businesses to diversify suppliers and reduce reliance on U.S. imports to build economic resilience.
Source: Financial Post
