‘They’re in a state of flux’: Manufactures take pre-emptive action against U.S. tariff threat

Maritime manufacturers are taking action against the United States’ proposed 25 per cent tariffs.

The looming threat of U.S. tariffs on Canadian goods is a week away, but manufacturers say the uncertainty has already had a negative effect, with several companies taking pre-emptive action.

“We just have to be aware and smart,” says Keith Parlee, CEO of Moncton-based Apex Industries, which manufactures custom metal products.

Parlee says the company has been “moving a bit slower” on growth plans that were previously underway ever since U.S. President Donald Trump suggested across the board 25 per cent tariffs after his November election win. Parlee says the company has been in constant contact with its suppliers and customers ever since.

“A lot of them are of the same opinion, this may or may not happen,” he says. “So nobody is running out of the building yet. But we want to stay in touch with them and hear their concerns if they have them.”

Canadian Manufacturers & Exporters recently surveyed its membership and found many are also taking steps to get ahead of tariffs if they happen: 30 per cent are accelerating shipments to the U.S. to get ahead of potential tariffs, 22 per cent are freezing hiring, 30 per cent are delaying investments, and 28 per cent are seeking alternative markets.

“They’re in a state of flux,” says Ron Marcolin, divisional vice-president of Canadian Manufacturers & Exporters in New Brunswick and Prince Edward Island. “They’re just pressing the pause button for a lot of initiatives they had already planned for 2025.”

Marcolin says a company’s decision to delay the purchase of equipment, for example, is “a real negative because maybe that new machine could have increased production or lowered production costs.”

“If there’s choppy waters on the horizon and it’s unknown what is coming at you, you have to be very prudent as a businessperson.”

This week, New Brunswick Premier Susan Holt told reporters the threat of tariffs was already “hurting the economy.”

“We have seen a decrease in business activity, a decrease in hiring intentions, a decrease in revenues for the province already before the tariffs have even been put in place,” said Holt.