Manufacturer Information Hub – Trade & Tariffs
CME IS KEEPING MEMBERS IN THE KNOW
The Trump administration has released a broad-based memorandum on their vision for an ‘America First Trade Policy.’ Among other things in the document that could impact Canada, the memorandum calls for the U.S. Departments of Commerce and Treasury and the U.S. Trade Representative (USTR) to investigate the source of annual trade deficits and make recommendations, including the imposition of tariffs, to address them. CME will continue to provide timely updates and expert analysis to help manufacturers navigate these challenges.
IN THE NEWS
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UPDATE ON PRESIDENT TRUMP'S TRADE TARIFF PLAN
Reciprocal Tariffs Announced, Assessment To Be Completed by April 1
On February 13, 2025, President Trump signed a presidential memorandum which announced a framework “reciprocal” tariffs on other trading partners across the world. The memo outlines out a process for the U.S. to impose reciprocal tariffs on other countries, effectively raising tariffs on a country’s exports to the U.S. based on the level of tariff and non-tariff barriers that country imposes on U.S. goods. All countries who trade with the U.S., including Canada and Mexico, will be included in this assessment, to be completed by April 1. This would provide President Trump the opportunity to introduce reciprocal tariffs or other non-tariff measures as early as April 2.
CME Condemns New Tariffs on Steel, Aluminium Imports from Canada
CME condemns the U.S. administration’s unjustified decision on Feb 10 to impose new tariffs on imports of steel and aluminium from Canada. This decision is yet another move that significantly undermines one of the most successful economic partnerships in the world. The proposed tariff measures will harm consumers, businesses and workers on both sides of the border.
U.S. Administration Decision to Delay Previously Announced Tariffs
CME welcomes the Feb. 3 decision to delay the imposition of tariffs for 30 days and to continue discussions with the federal government. The proposed tariffs, if enacted, would have caused immediate and significant harm to manufacturers, workers, and consumers on both sides of the border. We remain optimistic that ongoing negotiations will result in a full withdrawal of the tariff plan and a renewed commitment to economic cooperation between Canada and the U.S. CME will continue to advocate forcefully for Canadian manufacturers by engaging with government officials, the media, and industry leaders to promote trade policies that enhance economic growth, competitiveness, and stability across North America. A prolonged trade dispute would be detrimental to businesses and consumers on both sides of the border, underscoring the urgency of a negotiated resolution.
TARIFFS INITIALLY PLANNED TO BEGIN FEBRUARY 4
The U.S. administration had moved to impose punitive, unjustified tariffs on Canadian exports, effective February 4—harming manufacturers, workers, and consumers in both countries. These tariffs would have had an immediate and severe impact on Canada's manufacturing sector, threatening jobs, disrupting supply chains, and increasing costs. In response, Canada had announced a 25 per cent retaliatory tariffs on select U.S. imports starting immediately after the U.S. actions take effect, with further measures planned in the following weeks. While immediate action may be necessary, a prolonged and costly trade war is a lose-lose scenario—harming manufacturers, workers, and consumers on both sides of the border.
WORKING ACROSS BORDERS
We’re working with our counterparts at the National Association of Manufacturers (NAM) to emphasize the economic damage these tariffs will cause on both sides of the border. A recent NAM press release stresses that "A 25% tariff on Canada and Mexico threatens to upend the very supply chains that have made U.S. manufacturing more competitive globally. The ripple effects will be severe, particularly for small and medium-sized manufacturers that lack the flexibility and capital to rapidly find alternative suppliers or absorb skyrocketing energy costs. These businesses—employing millions of American workers—will face significant disruptions. Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk."
ADVOCATING FOR RELIEF MEASURES
CME will continue to advocate for urgent policies that will safeguard Canadian businesses, workers and their families. We’re working with all levels of government to engage U.S. officials and push for an immediate rollback of these misguided and damaging tariffs and pursuing urgent relief by advocating for direct federal and provincial support for manufacturers and workers impacted by these measures. During past crises, including steel & aluminum tariffs, the COVID-19 pandemic and more, CME successfully advocated for relief measures, and we will do so again for you.
By the Numbers
IMPACT ON MANUFACTURERS
In December, CME consulted more than 300 manufacturers coast to coast on the impact of proposed tariffs to their business. Nine in ten Canadian manufacturers would face significant or very severe impacts on their business if the U.S. imposes tariffs on Canadian imports. Business impacts will worsen once tariffs are implemented with 48 per cent of manufacturers considering a hiring freeze or laying off workers, 46 per cent considering postponing or cancelling planned capital investments and 49 per cent considering shifting some production to the U.S.
Manufacturing Fast Facts
The manufacturing sector represents more than 10% of Canada’s gross domestic product.
Manufacturers directly support more than 1.7 million jobs in Canada.