Canadian Factory Shipments Rise Amid New U.S. Tariffs

Statistics Canada reported that Canadian factory shipments rose 1.5% in August to a seasonally adjusted 79.88 billion Canadian dollars. While the total value increased, the actual volume of manufacturing sales remained largely unchanged because of a 1.3% rise in prices measured by the industrial product price index.

Growth was primarily driven by the chemical sector and the primary metal sector, where sales jumped 14% to 7.6 billion Canadian dollars. However, transportation equipment sales fell for a second straight month, a decline attributed to an extended shutdown at an auto assembly plant.

Wholesale sales dropped 1.6% to 91.58 billion Canadian dollars, with the largest declines occurring in agricultural supplies, vehicles, and parts. Analysts link this downturn to new tariffs imposed by President Donald Trump in late August on goods representing roughly 5% of Canadian exports to the United States. This economic pressure extended into the labor market, with manufacturing employment declining by 12,700 jobs in September.