Eastern Ontario manufacturers make contingency plans in face of looming Trump tariffs

January 17, 2025

Businesses and officials in Eastern Ontario are bracing for potential fallout from the sweeping tariffs proposed by U.S. President-elect Donald Trump, whose inauguration will be held Monday.

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Businesses and officials in Eastern Ontario are bracing for potential fallout from the sweeping tariffs proposed by U.S. President-elect Donald Trump, whose inauguration will be held Monday. Trump’s proposed tariffs of 25 per cent on Canadian goods could disrupt key sectors in the region, including manufacturing and agriculture, both of which rely heavily on cross-border trade. “We have a lot of goods that are going back and forth across the border multiple times,” said Ann Weir, economic development manager for the United Counties of Leeds and Grenville. “This is a factor for many of our manufacturing and agricultural businesses and the ripple effect could impact other sectors as well.” Frédéric Perron, a spokesperson for Ivaco Rolling Mills in Hawkesbury, said the company’s approach is to prepare for the worst while continuing discussions through official channels. “At this point, the strategy we have is to advocate to governments (U.S. and Canada) through our own resources and with the support of the Canadian Steel Producers Association,” Perron said. “We’ve lived through such 25 per cent tariffs on steel products back in June 2018 and learned from this experience. Discussions with our U.S. customers are ongoing and some are also advocating on their side with their local officials.” Perron noted that detailed planning is necessary given the uncertainty of the tariffs’ implementation. “We will finalize our strategies as we get closer to the presidential inauguration,” he said. Other companies are exploring contingency plans. Julia Gamble, vice-president of finance at Voltari Electric, an electric boat manufacturer in Merrickville, said her company is preparing for potential disruptions. “Like most things that are going to be slapped with a tariff, it would be raw materials, like steel or lumber,” Gamble said. Voltari has considered leveraging its U.S.-based operation in Florida to handle some of its manufacturing needs. “That’s our backup plan. It’s been a loose plan for years to eventually have some manufacturing over there, but we’re still evaluating our options.” Weir noted that while some companies may have contingency plans similar to those of Voltari, relocating jobs and operations isn’t feasible for most manufacturers, particularly smaller ones, and could have long-term repercussions for the region. “Not all manufacturing can just flip on a dime,” she said. “To go through that process — sourcing a site, building infrastructure, recruiting — takes the term of a presidency. It’s not an overnight solution.”

Advocacy is key

Weir emphasized the importance of advocacy and de-escalation in the ongoing trade tensions. Local officials and economic development teams are actively working to mitigate potential damage. “From an economic development perspective, we stay in strong communication with businesses to understand their needs and see if there are local solutions,” said Weir. “We also ensure these concerns are communicated to provincial and federal representatives.” Weir highlighted ongoing discussions with the office of Leeds–Grenville–Thousand Islands and Rideau Lakes MPP Steve Clark and other leaders to maintain infrastructure and competitiveness. “Our role includes facilitating connections, supporting grant applications, and positioning local businesses for any funds that may become available,” she said. On the provincial side, Ontario Premier Doug Ford has been vocal about the potential economic damage the tariffs could inflict on the province. Ford warned that a 25 per cent tariff on Canadian goods could cost Ontario up to half a million jobs. “These tariffs will affect every single person,” Ford said in a recent press conference, citing significant job losses and economic disruptions. He also suggested retaliatory measures, including cutting off electricity exports to U.S. states like Michigan and New York, which rely on Ontario for power. “I don’t want this to happen, but my No. 1 job is to protect Ontarians and Canadians as a whole,” Ford added.

Building resilience

The United Counties of Leeds and Grenville plan to conduct a business survey in February to assess the evolving impact of the tariffs. “These surveys will give us a clear picture of how businesses are being affected and guide our response,” Weir said. “We’re also working to showcase the benefits of remaining in the region,” she added. “Highlighting the advantages of operating in Eastern Ontario and fostering competitiveness among sister sites in Canada and the U.S. is critical. “We’re keeping ourselves and our representatives informed about the implications for businesses,” said Weir. On his social media platform, Truth Social, Trump suggested tariffs would be implemented swiftly after taking office. “We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share,” Trump wrote, proposing the creation of a government agency to collect tariffs on foreign imports.