The Impact of New Tariffs on Canadian Manufacturing and Oil Sector: Navigating an Economic War

February 2, 2025 TruthUSA

The U.S. and Canadian tariffs present substantial uncertainty and a financial setback in the short term, followed by a period of readjustment, say Canadian manufacturers and oil producers.

U.S. President Donald Trump has announced a 25 percent tariff on imports from Canada and Mexico, and a 10 percent tariff on China on top of existing tariffs on that country starting on Feb. 4. The tariff on Canadian oil and gas will be lower at 10 percent. In retaliation, Canada says it will put 25 percent tariffs on $155 billion worth of U.S. imports.

The announcements have left Canadian manufacturers with uncertainty and dubious expectations. Burlington, Ont., businessman Ron Foxcroft, who owns Fox 40, a manufacturer of referee whistles and other types of sports and safety products, as well as Fluke Transport, which runs trucks between Ontario and four U.S. states, says the tariffs will have a heavy impact.

“Tariffs create an economic war, and this is a really serious economic war,” Foxcroft told The Epoch Times.

“Obviously our [import] prices are going to go up 25 percent because of the tariff. So, this will not only hurt us, but it’ll hurt the supplier in the United States, because we’re going to have to seek alternate arrangements,” he said.

Foxcroft sells his products to 140 countries, but says almost 20 percent of its overall sales are to the United States. Therefore, the tariffs will cause no small impact to his business sales, he says. Still, he says, businesses will eventually adjust to the new environment.