Canadian Manufacturers Move to U.S. to Avoid Trump Tariffs

President Donald Trump scheduled 50 percent tariffs on a wide range of Canadian products to take effect on August 19. The impending costs have prompted several Canadian manufacturers to relocate production to the United States to maintain market access and protect employment.

Northern Cable, an Ontario-based manufacturer of armored electrical cables, is currently filling U.S. warehouses and searching for an American factory. Chief Executive Shelley Bacon stated the company must take these steps because there are too many jobs at stake to do nothing. Other firms, such as Ambico, are attempting to mitigate the impact by sourcing U.S.-made steel or expanding into European markets. Ambico Chief Executive Jack Shiner decided against moving production south, though he expressed uncertainty regarding long-term sustainability.

A May survey by KPMG found that 29 percent of 275 surveyed manufacturers had already moved some or all production to the U.S. due to trade tensions, with another 13 percent considering the move. Some companies report additional pressure from an influx of Chinese imports into Canada, a result of U.S. tariffs on Chinese cables.