Canadian manufacturers weigh moving south as Trump tariffs loom

A recent KPMG Canada poll of 275 manufacturers found that 42 percent are thinking about moving production to the United States and some are also considering shifting head offices south of the border. Vancouver-based Interfor Corp. disclosed a plan to relocate its corporate and functional support from British Columbia to Georgia, citing the 45 percent tariff on softwood lumber imposed by the Trump administration. Analysts say Prime Minister Mark Carney’s decision last year to drop most counter-tariffs removed a key bargaining chip, leaving Canada vulnerable to further trade pressure.

The White House has referenced Canada’s remaining duties on autos and provincial alcohol bans as part of a rationale for potentially imposing 50 percent tariffs on $20 billion of Canadian exports. Trade adviser Peter Navarro warned that the United States will continue to apply pressure unless Canada changes its stance. The piece argues that Canada’s heavy reliance on U.S. trade gives it leverage, but current policy choices may weaken its negotiating position.