Manufacturing meltdown: How Trump's tariffs reshaped Canada

Manufacturing struggles from Trump's tariffs

Months into the trade war, Canadian manufacturers are facing significant challenges. They have been losing sales in the critical U.S. market and are resorting to layoffs to remain operational. The tariffs imposed by former U.S. President Donald Trump have created a tough business environment for Canadian manufacturers dependent on cross-border commerce.

Impact on U.S. market sales and workforce

The tariffs have directly reduced Canadian exports to the U.S., curbing their market share and profitability. Many manufacturers have had to decrease payrolls, reflecting the pressure on their financial stability. This adjustment aims to shore up operations amid declining demand and increased costs due to tariff barriers.

Broader economic consequences

This manufacturing downturn is symptomatic of the wider economic impact linked to trade tensions. Tariffs have disrupted supply chains and added uncertainty, prompting some businesses to reconsider investment and hiring plans. The struggle to maintain a foothold in the U.S. market illustrates the complex fallout from the trade war environment.

"Canadian manufacturers are struggling. They're losing sales in the crucial U.S. market. They're laying off staff to keep afloat..."
— Original statement from The Globe and Mail

This situation reveals how trade policies can deeply affect interconnected economies and the operational health of industries reliant on cross-border trade.

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The Globe and Mail The Globe and Mail — 2025-11-28

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