- Florence Jean-Jacobs, Principal Economist • Samuel Turcotte, Analyst
Which Sectors of the Canadian Economy Are Most Vulnerable to Trump’s Tariffs? A 10-Month Status Update
When Donald Trump was sworn in as US president in January, we analyzed the potential risks his tariff threats posed to various Canadian industries. Nearly 10 months later, many of those risks have materialized, while a few have intensified. Luckily, some industries have managed to avoid the worst of tariffs.
As feared, manufacturers of primary metals, such as steel and aluminum, and wood products are highly vulnerable to tariffs, and the transportation and wholesale sectors are feeling the effects of the reduction in international trade.
Some industries now appear more vulnerable than initially expected. These include motor vehicle manufacturing, canola production and forestry and logging.
The unexpected exemption of CUSMA-compliant products from the blanket IEEPA tariff on Canadian goods has made many sectors far less vulnerable. Several manufacturing segments exempt from sector-specific tariffs have proven more resilient than expected. So has the agricultural sector.