Survey shows 9 in 10 Canadian manufacturers fear severe impacts from proposed us import tariffs
Proposed tariffs by US President-elect Donald Trump could have devastating consequences for Canadian manufacturers and workers, according to a survey by the Canadian Manufacturers and Exporters (CME), as reported by BNN Bloomberg.
The report, released on Thursday, revealed that nearly nine in 10 manufacturers surveyed anticipate significant or severe impacts if the US imposes tariffs on Canadian imports.
“These findings show why we need an urgent and co-ordinated response from governments to protect manufacturing businesses, workers and families,” said Dennis Darby, CME's chief executive, in a statement.
“Failure to do so will be devastating to our economy.”
Trump has threatened to impose a 25 percent tariff on all imports from Canada and Mexico if they fail to stop the flow of migrants and illegal drugs into the US.
Darby stated that the tariffs would jeopardize nearly $600bn in exports, two-thirds of which consist of manufactured goods.
In response to Trump’s concerns, the Canadian federal government announced $1.3bn in spending on border security and the immigration system as part of its fall economic statement.
The CME survey of 330 manufacturers found that many companies are already taking steps to mitigate risks ahead of Trump’s inauguration.
About 30 percent of respondents are accelerating shipments to the US, while another 30 percent have postponed planned investments. Additionally, 22 percent have implemented hiring freezes.
If the tariffs are implemented, the report notes that 48 percent of manufacturers will consider hiring freezes or layoffs, 46 percent will consider postponing or cancelling planned capital investments, and 49 percent will consider shifting some production to the US.
On Wednesday, Trump added to trade tensions by claiming on Truth Social that the US is financially supporting Canada.
He wrote, “We subsidize Canada to the tune of $100,000,000 a year,” referencing a claim about a $100bn trade gap, and argued that the imbalance “makes no sense.”
The non-random CME survey, conducted between December 11 and 18, included manufacturers of varying sizes: 40 percent employed fewer than 100 workers, 40 percent had between 100 and 499 employees, and the remainder employed over 500 staff.
As trade uncertainty grows, manufacturers are preparing for potential disruptions to their operations.
