Mon, 17 Mar 2025

Mon, 17 Mar 2025 Are US tariffs bringing manufacturing back to Canada?

Canadian firms are having a growing conversation about the need for more homegrown production.

* The tariffs imposed by Donald Trump have led to a wave of patriotism in Canada, with some consumers and businesses boycotting American products.
* Canadian businesses are now highlighting their commitment to Canadian manufacturers, such as Au Lit Fine Linens, which has created a "shop all made in Canada" section on its website.
* Business leader Sandra Pupatello says that reshoring is necessary to support Canada's economy and supply chain, citing the example of US mask manufacturer 3M halting exports to Canada during the Covid-19 pandemic.
* A Canadian government report found that there had not been a large-scale or notable increase in reshoring by businesses, but things may be changing now.
* Companies such as Rainhouse Manufacturing Canada are seeing benefits from reshoring, including giving small companies a leg up and ensuring fair wages and environmental benefits.
* Economist Randall Bartlett says it's too early to tell if manufacturing will start coming back to Canada, citing major hurdles such as the highly-integrated auto industry and the reality of global trade.
* Bartlett suggests that diversifying Canada's trade partners might be more practical than a full reshoring push, focusing on industries where Canada has a comparative advantage.
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