Dive into how renewed US tariffs under the Trump administration are straining Canada’s economy, impacting trade, driving up costs and challenging businesses.

As of March 26, 2025, the Mexican real production was forecast to be the most impacted by the ** percent tariffs on U.S. automotive imports in the short run. Canada, which was also one of the countries where U.S. automakers outsourced their vehicle or parts production, was also projected to be affected by the tariffs.

Tariffs have long been central tool in global trade policy. Learn how tariffs affect critical US industries, and how businesses are navigating their impacts.

The Metal Tank Manufacturing industry in Canada has performed unevenly, as long-term challenges from import competition and downstream disruptions produced unstable conditions. The pandemic cratered industrial activity, temporarily deteriorating spending from petroleum and construction markets. Although much of the industry’s client base quickly recovered, commodity prices soared as inflation spiked in recent years, challenging domestic manufacturers who contend with cost-effective imports from both the United States and China. As a result, industry revenue is forecast to decline at a CAGR of 4.2% to $1.3 billion over the five years to 2024, including a drop of 10.8% in 2024. Canadian metal tank producers have contended with high levels of import competition for decades. US manufacturers, which account for most metal tank imports, have been able to leverage their economies of scale, expertise and resources gained from operating in the US market to outcompete Canadian producers. Imports have risen steadily as a share of domestic demand, climbing to more than 35.0% in 2024 from 25.0% five years prior. Nonetheless, because many metal tanks are fabricated and installed on location, imports have been unable to completely displace domestic manufacturing. Still, the profit pressures engendered by lower-cost imports, especially as China has captured a larger share of the domestic market, have forced some manufacturers to close shop. The industry is cautiously poised for growth as climbing crop, oil, industrial and chemical production will expand spending on metal tanks. In particular, manufacturers will continue to find global export destinations, as a growing global population will increase the need for better oil and crop storage solutions, including metal tanks. Consequently, industry revenue is forecast to increase at a CAGR of 0.7% to $1.2 billion over the next five years. However, the industry will remain challenged by a changing marketplace. While plastic and composite material tanks will pose a competitive threat, import competition will continue to rise. Even more troubling for the industry may be the incoming Trump Administration, which has threatened to impose 25% tariffs on Canadian products. The imposition of duties in manufacturers’ primary export market could pose a monumental challenge to the Canadian industry.

The Clay Brick and Product Manufacturing industry in Canada has fared with volatile conditions in recent years. Because refractory product manufacturers are vulnerable to shifts that impact downstream metal manufacturers, the COVID-19 pandemic led to considerable declines from metal manufacturers and energy producers. However, as world steel prices rose amid an economic rebound, manufacturers capitalized on higher selling prices and strong downstream growth. World steel prices have tempered since, and import penetration has only steepened. Consequently. industry revenue is forecast to contract at a CAGR of 10.2% over the past five years and is expected to total $597.6 million in 2024. In 2024 alone, industry revenue is expected to contract an additional 0.3%. The industry is small and fragmented, with only one manufacturer generating more than 5.0% of revenue. This has compounded the challenge of import penetration for the industry. Imports, largely from the United States, Italy and China, which have grown to satisfy more than two-thirds of domestic demand every year. Despite high tariff protection, the Canadian market has been flooded with Italian ceramics, which have a stellar reputation and brand recognition. The market has also been flooded with US and Chinese ceramics, which are offered at competitive prices. Ultimately, intense price competition has limited profit margins for manufacturers.Clay product manufacturers will see modest growth in the coming years, as metal prices will remain elevated and construction markets will grow. However, continued pressures from competitive imports and product substitutes will force more manufacturers to close up shop. With pressure from substitutes only expected to steepen, manufacturers will look to eco-friendly ceramic tiles and insulating bricks to provide an additional avenue of growth. Overall, industry revenue is forecast to grow at a CAGR of 0.9% over the five years through 2029 to total $623.8 million. Still, manufacturers are bracing for turbulence with the incoming Trump Administration, which has threatened to renew tariffs on Canadian goods, which would undermine the competitiveness of Canadian goods in the US market.

Various automotive companies recorded a decline in their share prince on Monday, February ***, 2025. Of the companies surveyed, French car parts supplier Valeo was the most impacted by this shift, with his share price dropping by *** percent. This market shock came after President Trump announced ** percent tariffs on goods from Mexico and Canada, and ** percent tariffs on imports from China.

The Glass Product Manufacturing industry in Canada has faced substantial volatility in recent years. Post-pandemic economic measures like high interest rates have hindered new construction projects, impacting the demand for flat glass. However, consumer spending on glass-intensive products like home appliances and electronics has grown significantly, while exports have grown considerably, nearly doubling in 2022 alone. With domestic manufacturers continuing to face pressure from import penetration from the United States and China, revenue is expected slump at a CAGR of 0.2% over the past five years to reach $2.2 billion in 2024, including a decline of 8.1% in 2024. Long-term trends in the global marketplace have deteriorated the viability of Canadian glass products. Companies have struggled to compete with imports, which have captured an increasing share of domestic demand. More than half of these imports come from the United States, with North American manufacturers benefiting from the absence of trade barriers, while Chinese products have expanded their foothold because they are especially competitive on price in the generic glasses market. Foreign companies have exerted significant pressure on prices, challenging the profitability of domestic glass product manufacturers. Increasingly, glass product manufacturers have transitioned away from making their own glass to transforming it into higher-value products. Canadian glass product manufacturers are poised to enjoy growth from a burgeoning construction sector in the United States as interest rates continue to temper. The industry will benefit from similar trends in Canadian nonresidential construction markets, as well as growing consumer spending. Although rising import competition will continue to challenge the industry, revenue is forecast to climb at a CAGR of 1.1% to $2.4 billion over the five years to 2029. However, the incoming Trump Administration's threat to impose sweeping tariffs on Canadian goods could threaten the industry. The imposition of duties on Canadian glass products could severely undermine the competitiveness of Canadian goods in the US market, which accounts for almost all glass exported from Canada.

Rising healthcare utilization continues to drive growth in the Medical Instruments and Supplies industry. Manufacturers play a crucial role as more people access healthcare, fueled by demographic trends like a rising number of adults 65 and older and the increasing prevalence of chronic illnesses. Expanded insurance coverage has also brought millions of new consumers into the healthcare system, pushing demand for essential medical equipment and supplies. Despite these positives, recent years have seen manufacturers navigating significant headwinds, including tariffs, inflation, supply chain volatility and currency fluctuations. In all, revenue has been expanding at a CAGR of 1.7% to an estimated $105.8 billion over the past five years, with 1.9% growth expected in 2025. One of the most disruptive challenges is the sharp escalation in global tariffs on medical components and finished goods in 2025. The Trump administration's tariff policy, introduced in early 2025, imposes high rates on certain products from major trading partners, including China, Canada and Mexico. Domestic manufacturers, who rely heavily on globally sourced raw materials and components like surgical steel and polymers, have seen their cost of goods increase, hurting profit. This creates an environment where even basic medical supplies carry a much higher production cost. While some manufacturers are trying to accelerate supply chain shifts or expand domestic investment, these changes are costly and time-consuming. Strong and growing healthcare demand will provide opportunities for innovation and revenue growth, particularly in specialized and high-tech areas. For example, manufacturers developing advanced wound care dressings and antimicrobial surgical instruments are experiencing increased demand as healthcare providers seek safer and more effective treatment options. Evolving trade policy will remain a significant headwind, and resolving its impact—whether through strategic supply chain investments, negotiations on trade policy or technological adoption—will be central to sustaining profit. Industry revenue is forecast to expand at a 2.7% CAGR to an estimated $120.9 billion over the next five years.