Canadian Manufacturers Hit by U.S. Tariffs and Job Cuts

Canadian manufacturers in sectors ranging from steel to kitchen cabinets are grappling with deepening economic pressures from targeted U.S. tariffs, as the trade conflict enters its second year. Industries such as metal production, lumber and automobiles continue to face duties exceeding 25 percent, despite most trade flowing tariff-free under the Canada-U.S.-Mexico Agreement. These measures, imposed more than a year ago under Section 232 of U.S. trade law, have led to widespread job cuts, production slowdowns and pleas for federal intervention to protect the longstanding bilateral economic ties.

The tariffs have not only restricted access to the U.S. market but also flooded Canada with imports from other nations redirected from American buyers. Daniel Drapeau, CEO of Quebec-based custom cabinet maker Miralis, described the dual challenge in an interview. His company invested $43 million since 2022 to build two automated plants, positioning it for growth after navigating the COVID-19 pandemic, high interest rates and inflation. "We were ready to grow after all those crises," Drapeau said. "But now we're being hit by the fact that there is a surge. There is too much product...