Canadian Manufacturers & Exporters (CME) is calling on the federal government to take immediate action to protect Canada’s manufacturing industry from the looming threat of U.S. tariffs. In a recent open letter, CME President and CEO Dennis Darby warned that tariffs under U.S. President-elect Donald Trump could have devastating effects on Canada’s manufacturing sector, which plays a vital role in the nation’s economy.

Manufacturing accounts for over 25% of Canada’s jobs and more than 60% of its merchandise exports. Darby emphasized that the proposed tariffs could put thousands of businesses and jobs at risk, disrupting supply chains and halting investment in the sector. He also noted that the threat of tariffs adds to ongoing challenges, including low productivity growth, skills shortages, and a tax and regulatory environment that undermines Canada’s competitiveness.

“The imposition of these tariffs could trigger an economic shock that disrupts our manufacturing sector for years,” Darby stated. “We need decisive action now to mitigate the impact, protect jobs, and ensure the future of our manufacturing industry.”

To address the immediate threat, CME is urging the government to implement relief measures such as tariff exemptions, investment incentives, and support for supply chains. These actions are seen as essential to stabilizing businesses and safeguarding jobs during the tariff period.

Beyond short-term relief, CME is advocating for long-term structural reforms to enhance Canada’s competitiveness on the global stage. These include addressing internal trade barriers and modernizing the country’s regulatory and tax policies to foster greater investment and growth within the manufacturing sector.

CME’s call for action underscores the urgency of protecting a sector that is essential to the Canadian economy. As the government navigates these challenges, the need for quick, effective solutions has never been more critical to ensuring the resilience and growth of Canada’s manufacturing industry.