President Trump's tariffs are challenging the US dairy industry, heavily reliant on exports, with retaliatory measures from China and Canada threatening growth.

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

The article explores the potential impact of proposed U.S. tariffs on Mexican and Canadian imports, particularly affecting Nissan, amid its merger talks with Honda.

As of March 26, 2025, the 25 percent tariffs on U.S. automotive imports were forecast to impact exports from the United States the most. The country is projected to record a short-run decrease of nearly three percent of its total exports as a result of the policy. Mexico and Canada, where large U.S. automakers outsource part of their production, were projected to be the second and third countries most affected among those analyzed.

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.

Volatile conditions have threatened the Pump and Compressor Manufacturing industry in Canada. Products produced by manufacturers are essential to a wide range of downstream industries, but water management facilities, oil and gas operations and construction markets are the most crucial. Fluctuating hydrocarbon prices have curtailed spending from domestic markets, although manufacturers managed to weather the storm by relying on exports, a potential life line for many. Nonetheless, lower-cost imports have continued to pose a dire threat to producers as lower cost substitutes have flooded the domestic market. These trends have pushed revenue to decline at a CAGR of 3.8% over the past five years to reach $2.6 billion in 2024, when revenue is estimated to drop an additional 3.9%. Given their reliance on oil and gas markets, manufacturers face inherent exposure to price fluctuations and subsequent ripple effects. Still, volatility heightened amid the pandemic's peak and in more recent years, as geopolitical tensions grew. While revenue plummeted in 2020, a recovery followed in 2022 as commodity prices surged. Meanwhile, declining prices have reduced purchasing costs, allowing companies to expand profit since 2019. However, intense import competition and volatile conditions have overwhelmed some companies. Manufacturers have doubled down on investment in automated technologies and unmanned equipment to reduce reliance on physical labour. The industry's challenges are set to intensify. Falling global crude oil prices will diminish extraction and refinement activity, depressing a major source of revenue for many pump and compressor manufacturers. Revenue is forecast to decline at a CAGR of 1.2% over the next five years, reaching $2.5 billion in 2029. Canada’s manufacturers will focus ever more on high-value imports to the United States, which already accounts for more than four-fifths of all industry imports. However, the incoming Trump Administration's threat to impose sweeping tariffs on Canadian goods could threaten the industry, which currently benefits from free trade agreements.

Alcoa Corp. reports a $20 million loss due to US tariffs on aluminum imports, highlighting the impact of trade policies on the 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.

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.

The Steel Rolling and Drawing industry in Canada has faced significant turbulence, pushing revenue downward in recent years. Steel prices have fallen in consecutive years after massive swings in 2020 and 2021. Canada’s manufacturers have also been challenged by the growing penetration of domestic markets by imports, pushing down the price of industry products. As a result, industry-wide revenue is forecast to contract at a CAGR of 6.5% over the past five years to $1.5 billion in 2024, when revenue is projected to drop $1.5 billion. Exports to the United States have been a boon to steel rollers and drawers amid declines in the domestic market. Exports to the US surged by more than 40.0% in 2022 alone, driving export expansion as Canadian manufacturers sought new markets. Consequently, exports' share of revenue has nearly doubled and is expected to surpass 38% of total revenue in 2024. Nonetheless, steel rollers and drawers’ success in cultivating export markets has not been able to forestall profit losses, as falling steel prices have placed pressure on global clients to pass on cost decreases.Steel rollers and drawers will face ongoing challenges as declining steel prices constrain performance. Within Canada, rollers and drawers will continue to endure pressure from integrated steel mills and metal wholesalers adopting functions previously performed by industry mills. However, the industry is expected to eke out growth as construction markets in Canada and the US offer opportunities spurred by federal infrastructure programs. Industry revenue is thus projected to rise at a CAGR of 1.2% through the end of 2028, totalling $1.6 billion. Still, manufacturers are bracing for turbulence with the incoming Trump Administration, which has threatened to renew tariffs on Canadian goods. The imposition of duties on Canadian steel could severely undermine the competitiveness of Canadian goods in the US market, which today gobbles up almost all steel dolling and drawing exported from Canada.