Many Canadian manufacturers eyeing U.S. move as trade tensions take a toll: KPMG

Regardless if our elbows are up or down, nothing short of becoming the 51st state is going to prevent tariffs on Canadian goods entering the US going forward. The US trade representative has said so already, “any new deal between Canada and the US will include tariffs”.It is a new world economic order in the eyes of the US President. Dropping our pants to any level isn’t going to change the situation. If some Canadian companies feel they would be better off manufacturing in the US and thereby avoiding tariffs, so be it. That is the result of US actions, not Canada’s.
 
Regardless if our elbows are up or down, nothing short of becoming the 51st state is going to prevent tariffs on Canadian goods entering the US going forward. The US trade representative has said so already, “any new deal between Canada and the US will include tariffs”.It is a new world economic order in the eyes of the US President. Dropping our pants to any level isn’t going to change the situation. If some Canadian companies feel they would be better off manufacturing in the US and thereby avoiding tariffs, so be it. That is the result of US actions, not Canada’s.
But.. But we all said "elbows up". How'd that strategy backfire?
 
But.. But we all said "elbows up". How'd that strategy backfire?
It didn’t. As I suggested, the actions taken by the US president and his trade negotiators haven’t been swayed, changed or at all affected by “elbows up” or pretty much any of the decisions taken so far by Canada. They were, and still are, bound and determined to hammer out a new trade deal that is entirely favourable to the US right from the start. Sure, Doug Fords brilliant add featuring Ronal Regan speaking about the dangers of tariffs, the removal of US liquor and spirits by different provinces and the counter tariffs Canada imposed, but have since removed, ruffled some feathers south of the border, but they did not in the slightest change the course of the trade negotiations. The only result of the “elbows up” campaign has been to focus the attention of Canadian consumers to consider the country of origin of their purchases and wherever possible buy Canadian. The impact, if there even is one, of the “elbows up” movement, is pretty much confined within the borders of this country.
 
Yes. It's almost like when the president said America doesn't need Canada's trade, he was right for the most part. Ultimately what Canada needs most is another dumb slogan, and not an environment where it is lucrative to do business.
 
Yes. It's almost like when the president said America doesn't need Canada's trade, he was right for the most part. Ultimately what Canada needs most is another dumb slogan, and not an environment where it is lucrative to do business.
Well, not according to most US business leaders and trade associations, who all recognize the importance of tariff free trade between Canada and the US. Ask the aluminum industry, the users of our potash, the states who depend on our electricity , the oil and refining industry, and most importantly the large automakers, if the US needs Canada’s trade. I would be more inclined to put my faith in their opinions as opposed to those of a failed and criminally indicted huckster. Trying to make a link between the “elbows up” campaign and the slow pace and as of yet, unresolved differences in the ongoing trade talks is rather simplistic and not at all factual. Like maple syrup, beavers, polar bears and pictures of Mounties, its impact is really intended for the domestic market. Let’s face it, other than in Michigan, who in the US even knows who Gordie Howe was?
 
I dislike when news stories share statistics that imply a huge impact with little detail. Huge percentages of companies have considered or may one day consider moving. Really? I just asked my boss (the owner) if he intends to relocate our 74 000 square foot manufacturing facility to the US and he said no.

100% of the people I polled have no intention of moving away from our amazing country.

Keep well,
Mike
 
  • Like
Reactions: loaders
If, or when new, restrictive tariffs are imposed on Canadian manufactured goods going into the US, I can see some Canadian companies moving their operation south. However a major decision such as this has many, many more parts to it than just the impact of some new tariffs. The overall costs involved with such a relocation may indeed exceed the value of new tariffs. Whatever advantage the Canadian company had while they operated in Canada might evaporate with a move south of the border. If companies felt that the business environment was that much better in America, why haven’t they already pulled up stakes and trotted off across the border?
 
Exactly,
We've got 65 skilled people that know our product inside and out from sales to design, procurement and manufacturing. Locating, attracting, training and retaining that talent south of the border especially when our company name has the word Canada in it could prove challenging when the orange hippo is trying to pit people vs. people. Our countries get along just fine without the politicians. Buggers!

Keep well,
Mike