Manufacturers call for bold policy changes as sector faces threats from U.S. tariffs

Bombardier employees work on an aircraft in Dorval, Quebec on Monday, April 14, 2025. THE CANADIAN PRESS/Christinne Muschi

TORONTO — A business group representing manufacturers is calling for less regulation and lower taxes as part of its policy recommendations to support a sector under threat from U.S. tariffs.

Canadian Manufacturers and Exporters says whoever wins the federal election has to act decisively to reposition Canada’s economy for growth.

Chief executive Dennis Darby says the economic threats from the U.S. are a wake-up call on the need for bold changes to make it easier to invest and build in Canada.

The group notes that the sector needs significant investment to compete, as manufacturing investment per worker in the U.S. is more than three times higher than in Canada.

Along with improving taxes and regulation, the proposals also include reducing interprovincial trade barriers, increased job training and targeted immigration, boosting research and streamlining energy project approvals.

The 25 per cent automotive tariffs that the U.S. has imposed has raised fears about the future of the sector in Canada, while the general trade hostility has also raised wider concerns about the manufacturing sector and Canada’s economy as a whole.

The Canadian Press