Canada Industrial Research Brief

Global factors pose a short-term challenge. As expected, the manufacturing sector continued to face external headwinds toward the end of 2025. In November, total sales declined by 1.2 per cent monthly, driven by a sharp 15.9 per cent drop in motor vehicle shipments and a 6.3 per cent decrease in motor vehicle parts sales. The automotive sector was significantly disrupted by global semiconductor shortages, affecting several assembly and manufacturing plants in Ontario. In addition, new U.S. tariffs — 25 per cent on medium- and heavy-duty trucks and 10 per cent on buses — that came into effect in November may have contributed to the production cuts. Other industries subject to ongoing U.S. tariffs, including primary metals and lumber, also recorded sales declines.