NEW DATA HIGHLIGHTS POTENTIALLY DEVASTATING IMPACT OF U.S. TARIFFS ON CANADIAN MANUFACTURERS AND WORKERS: CME

OTTAWA, ON, Dec. 19, 2024 /CNW/ - A new survey by Canadian Manufacturers & Exporters (CME) reveals that nearly nine in ten Canadian manufacturers would face significant or very severe impacts on their business if the U.S. imposes tariffs on Canadian imports.

The survey of more than 300 manufacturers conducted between December 11 and 18 highlights the major economic threat that tariffs pose to Canada's manufacturing sector – a key driver of the Canadian economy, directly accounting for 10 per cent of GDP, employing 1.8 million Canadians, and generating over 60 per cent of the country's goods exports.

Additional survey findings include:

• Manufacturers are taking pre-emptive measures to mitigate tariff risks:
• 30 per cent are accelerating shipments to the U.S
• 30 per cent have postponed planned investments
• 22 per cent have implemented hiring freezes
• Business impacts will worsen once tariffs are implemented:
• 48 per cent of manufacturers will consider a hiring freeze or laying off workers
• 46 per cent will consider postponing or cancelling planned capital investments
• 49 per cent will considering shifting some production to the U.S.
• If tariffs proceed, government support will be essential to protect manufacturing jobs:
• 56 per cent of manufacturers want governments to provide tax relief measures, such as deferring or reducing corporate taxes
• 45 per cent of manufacturers want government to offer temporary financial assistance to support employee retention 

Dennis Darby, President & CEO of CME, is calling for stronger government action to protect manufacturers from tariffs:

"Tariffs will endanger nearly $600 billion in exports to our largest trading partner, two-thirds of which are manufactured goods. These findings show why we need an urgent and coordinated response from governments to protect manufacturing businesses, workers and families. Failure to do so will be devastating for our economy."

SOURCE Canadian Manufacturers & Exporters

FOR MORE INFORMATION: Media Contact: Anna Woodmass, Director, Communications, NATIONAL Public Relations, [email protected], 416-571-2147