INDUSTRIOS Perspective: Navigating the Canada–U.S. Trade Negotiations
Tariffs are a persistent and unpredictable challenge for manufacturers, threatening margins, supply chain reliability, and long-term competitiveness. To truly help manufacturers-not just with theory but with proven, actionable steps-this guide distills the most effective tariff mitigation strategies for manufacturers from leading industry sources and real-world best practices.
Let’s all take a deep breath and ask ourselves, how did we get here? Why are we being bullied by our best friend?
Canada and the U.S. share one of the most deeply integrated trade relationships in the world. For decades, our economies have grown side by side, driven by collaboration and shared prosperity.But today, that collaboration feels more fragile than ever. The U.S.’s decision to impose 35% IEEPA tariffs on select Canadian goods has added uncertainty to an already complicated situation. At INDUSTRIOS Software, Inc., we see this as a turning point for how cross-border manufacturing could be approached.
Cross-border manufacturing at a critical juncture
We all know that the manufacturing economies of Canada and the U.S. are deeply, deeply intertwined. In the automotive sector alone, approximately 50% of the parts used in Canadian-assembled vehicles are sourced from U.S. suppliers. In vice versa, the U.S. depends heavily on Canada for essential resources like steel, aluminum, and energy. There’s a mutual dependency between our two nations that’s being disrupted.
“Manufacturing is, and has always been a collaborative effort across borders,” says Edward Szukalo, General Manager of INDUSTRIOS Software, Inc. “When trade barriers emerge, they ripple across entire supply chains.”
While the USMCA continues to protect most automotive exports, the recent tariffs have injected uncertainty into a system dependent on seamless trade. Manufacturers are right to be concerned about the consequences of prolonged negotiations or unfavorable agreements.
How to Prepare for Change in an Uncertain Landscape
Let’s be honest, we’re not politicians. We can’t just call up the White House or 24 Sussex Drive and demand an intervention to smooth things out between Canada and the U.S.
However, what we can do is stay informed and help manufacturers stay informed.
At INDUSTRIOS, our Tariff Tracker is designed to keep you updated on the latest trade developments, so you can make informed decisions for your business. We will also provide you with blog posts on how you can stay prepared, and make informed decisions for your shop floor.
Beyond staying informed, preparation means rethinking your strategies. This could involve:
- Diversifying suppliers to reduce dependency on any single market.
- Investing in operational technologies that improve efficiency and flexibility.
- Exploring alternative markets to expand your reach and mitigate risks.
The challenges we’re facing are more than real, but so are the opportunities that can get us through this.
What comes next?
To quote composer Richard Rodgers: “At the end of the storm, there’s a golden sky.”
While these trade talks and tariff news seem to change every day (or at least that is how it feels), one thing is clear: the manufacturing sector’s strength lies in its adaptability and collaboration.
“We believe in the resilience and adaptability of North American manufacturers,” Szukalo concludes. “If manufacturers can stay proactive, they can not only weather the storm but also emerge stronger and more competitive.”
There will be a golden sky again (no, not the Golden Dome). A clear sky at the end of these tariffs–an end to flip-flopper decisions and bully behaviour. The longstanding economic ties between Canada and the U.S. provide a foundation for shared success that will withstand every challenging time.
That’s how it’s always been, and that’s how it always will.
