Trump's 50% Tariffs Push Canadian Manufacturers Toward U.S. Relocation

President Donald Trump’s latest tariff round imposes a 50 percent duty on a broad array of products, including electric cable. The tariffs are slated to take effect next week. Companies that produce goods in Canada for U.S. customers—most notably Northern Cables, whose plant sits 2.5 miles north of the Ontario–New York border—face the prospect of sharply higher costs unless they shift production to the United States.

Seattle Times

Northern Cables, a 320-employee firm, says it will begin scouting U.S. facilities immediately. President Todd Stafford warned that its U.S. warehouses, stocked with cable spooled up to 12,000 lb, will be emptied within two to three weeks. The company is also pursuing European market access, though differing electrical standards could delay that route for up to 15 years.

Seattle Times

Ambico, a specialist door manufacturer, has not committed to moving south. CEO Jack Shinder has already switched to U.S.-sourced steel to reduce the effective tariff on its $5,000-$20,000 doors from 25 percent to roughly 10 percent. He remains uncertain about future tariff changes and is exploring licensing agreements with American firms and expansion into Europe, which he expects to replace about 15 percent of sales.

Seattle Times

A May survey of 275 manufacturers by Angus Reid for KPMG found that 29 percent have already moved some or all production to the United States since the trade dispute began, while an additional 13 percent are considering relocation.

Seattle Times

In 2024, China exported C$538 million of wire and cable to Canada, up from C$327 million in 2015. Canada imported C$872 million of cables from the United States and exported C$704 million to U.S. customers the same year.

Seattle Times

Shelley Bacon, chief executive of Northern Cables, said the tariffs force the company to “go down and go shopping” for an American plant, emphasizing the jobs at stake. Stafford added that the firm must “go into overdrive” to locate space and equipment. Shinder noted that his firm will “weather the storms” despite potential short-term losses, and he is weighing licensing and European certification as alternatives.

Seattle Times

• “Todd and I are going to have to go down and go shopping,” — Shelley Bacon, the company’s chief executive

Seattle Times

• “If the trade and tariff uncertainty continues and if there is not a focus from the government on some of the systemic issues that impact manufacturing in Canada, these manufacturers may not have a choice but to start moving to the U.S.,” — Anamika Gadia

Seattle Times

• “We’re getting hammered at in Canada by Chinese imports,” — Shelley Bacon, the company’s chief executive

Seattle Times

• “Todd and I are going to have to to go down and go shopping,” — Mr. Bacon, the company’s chief executive (identical to q2 but retained for completeness)

New York Times