Canada Industrial Research Brief

Manufacturing sales nosedived. The United States’ “Liberation Day” tariff announcement in April dealt a significant blow to Canada’s manufacturing sector. Although no additional tariffs were imposed on Canadian exports in April, the hit to global business sentiment sent shock waves through the country’s manufacturing sector. Total sales fell by 2.8 per cent month over month, while new orders plunged 6.8 per cent – the sharpest monthly drop since July 2022. Sales of petroleum and coal products led the decline, tumbling 10.9 per cent to their lowest level since August 2021. Meanwhile, a partial shutdown at several assembly plants in Ontario caused sales of motor vehicles and parts to shrink by 8.3 per cent – the steepest monthly decrease since December 2023.