Manufacturers and Port of Vancouver monitor uncertain trade landscape

Despite Canada not being included on the list of countries that will face reciprocal tariffs from the U.S., some industries are still reeling from tariffs that have been in place since early March.

Alan Arcand, chief economist at Canadian Manufacturers and Exporters (CME), said the auto industry is vulnerable to U.S. tariffs.

U.S. President Donald Trump announced April 2 that he was moving forward with tariffs on the automotive industry, slapping a 25 per cent tax on imports from Canada to the U.S.

Other industries Arcand said would be greatly impacted by U.S. tariffs include machinery, with 67 per cent of its exports going to the U.S.; chemicals, at 60 per cent; aerospace, 48 per cent; plastics and rubber products, 46 per cent; and wood products, 44 per cent. Steel and aluminum, which Trump has hit with a 25 per cent tariff, see 56 per cent of their exports heading south of the border.

CME has issued an open letter to all federal party leaders, urging them to take immediate action to help Canadian manufacturers and their workers deal with the impact of U.S. tariffs. “The letter outlines short-term relief measures to mitigate the tariffs’ impact and long-term structural reforms to enhance Canada’s global competitiveness and economic resilience,” Arcand said.

Whether the tariffs currently in place will have a lasting impact on the Canadian economy is difficult for Arcand to predict due to continued uncertainty.

“We are working closely with the government and U.S. allies to eliminate this risk and establish a lasting solution,” he said. “Our goal is to restore the strong, cooperative trade relationship that makes Canada and the U.S. global leaders in manufacturing.”

Ports, including the Port of Vancouver, are also monitoring what has been a roller-coaster ride when it comes to tariffs.

With Trump threatening tariffs on all Canadian goods, delaying them multiple times, imposing tariffs on certain products and most recently excluding Canada from reciprocal tariffs, it has been challenging to plan.

But the Port of Vancouver is a hub for imports and exports from various countries around the world. In fact, the vast majority of containerized trade through the port consists of Canadian imports and exports, not U.S.-market traffic.

The port connects Canada with 170 nations and moves $300 billion in trade every year. Nearly $1 in every $3 of Canadian goods traded outside North America moves through the port, and around 80 per cent of Canada’s international trade through the port is with markets outside the U.S. Much of these exports include grain, fertilizer and forestry products to countries such as China, Japan, Korea and India. Imports include consumer goods like industrial parts, vehicles and food from the Indo-Pacific region. In 2024, three-quarters of international trade through the Port of Vancouver was with the Indo-Pacific region, with 35 per cent of trade going to China, 14 per cent to Japan and Korea, and five per cent to India, among others. Last year, the port also saw record Canadian crude oil exports via the expanded Trans Mountain pipeline and terminal, amounting to 12.5 million metric tonnes—almost half of which was destined for Indo-Pacific nations.

“These are unprecedented times, and right now we are monitoring the situation and engaged in Canada’s response, including working closely with government and industry,” said the port’s senior communications advisor, Alex Munro. “There is an immense opportunity to grow and diversify Canada’s trade through the gateway, with the Port of Vancouver strongly positioned to support Canada and its response.”