Statement from Dennis Darby, President and CEO, Canadian Manufacturers & Exporters, regarding the state of U.S.-Canada trade

OTTAWA, August 1, 2025 – Canadian Manufacturers & Exporters (CME) is deeply disappointed that the United States has increased its tariff rate to 35 per cent and that Canada and the U.S. have failed to reach an agreement. Assuming there is no deal reached by the end of the day, this steep increase will be devastating for Canadian manufacturers, further driving up costs, disrupting supply chains, and threatening jobs across the country. Manufacturers had hoped this round of negotiations would bring long-overdue relief from unjustified U.S. tariffs.

CME strongly condemns the U.S. administration’s continued use of Section 232 tariffs, including the recent imposition of 50 per cent duties on semi-finished copper products and copper-intensive derivatives. We also oppose the U.S. administration’s decision to suspend de minimis exemptions globally. Taken together, these actions pose a serious threat to Canada’s manufacturing sector.

We recognize the challenges of negotiating with the U.S. administration, particularly amid a volatile geopolitical environment. CME appreciates the efforts of Canadian negotiators to pursue an agreement that reflects Canada’s national interest. We support the government’s decision to remain firm in pursuing a better deal, rather than accepting one that would compromise Canadian industry.

In the absence of an agreement, Canadian manufacturers, their workers, and their families will continue to bear the brunt of these harmful policies. The ongoing tariffs are disrupting cross-border supply chains, delaying investment decisions, and eroding Canada’s industrial competitiveness.

However, while the current situation is difficult, it is not final. Now more than ever, the government must accelerate efforts to implement comprehensive economic reforms, including the removal of interprovincial trade barriers, reductions in taxation, and the elimination of excessive regulatory burdens. At the same time, Canada must continue to diversify its export markets and seize new global opportunities for growth.

CME remains committed to working with all levels of government to advance policies that support Canadian jobs and employers.