Canadian Manufacturing Plummets as Trade Tensions Mount

Canada’s manufacturing sector experienced a significant downturn in April, with sales plummeting and new orders remaining flat. The drop is attributed to the impact of U.S. tariffs on Canadian steel and aluminum, leading to lower demand for materials like metal. Statistics Canada reported a 2% fall in factory sales compared to March, driven by declines in petroleum, coal, and motor vehicles. This follows a 1.4% decrease in March – the largest drop in seven months – indicating continued weakness in the sector. Despite some signs of recovery such as increased new orders and lower inventories, the overall picture remains concerning. Meanwhile, U.S. Senators met with Canadian officials to seek renewed economic and trade ties, seeking to mend strained relations following recent tariff disputes. The senators’ visit highlights a growing need for cooperation between Canada and the U.S., especially given the impact of these trade tensions on tourism and bilateral relations.