US Tariffs Trigger Job Losses in Eastern Ontario Manufacturing

American tariffs are destabilizing the manufacturing base in eastern Ontario, leading to significant production cuts and workforce reductions. In September, Novelis reduced its Kingston aluminum facility workforce by approximately 80 employees. This follows the closure of the INVISTA chemical facility in Maitland last year and additional layoffs by INVISTA in Kingston.

The Bank of Canada warned that these trade restrictions could lower Canada's GDP by 1.5 per cent by the end of 2026. The economic pressure stems from a heavy reliance on the American market, which purchased 71.7 per cent of Canada's merchandise exports in 2025.

Charlie Mignault, commissioner of the St. Lawrence Corridor Economic Development Commission, is urging the federal government to adopt a dual strategy. He argues that Canada must accelerate negotiations with Washington to restore predictable market access while simultaneously investing in long-term industrial diversification into European and Asian markets. Mignault noted that while diversification is necessary, it cannot serve as an immediate substitute for the United States market.