Tariffs Drive Sharp Decline in Canadian Manufacturing and Auto Sales in April
In April, Canadian manufacturing sales dropped 2.8%—the largest monthly decline since October 2023—largely due to escalating trade tensions with the U.S.
The motor vehicle sector was hit hardest, with sales falling 8.3% to $4.4 billion, marking the third consecutive monthly decline and the steepest drop since December 2023.
Contributing factors included weaker demand for certain models, assembly plant retooling in Ontario, and growing uncertainty over U.S. tariffs, which led to a 21.1% plunge in motor vehicle and parts exports.
Broader declines in petroleum and coal products (down 10.9%) and primary metals (down 4.4%) also weighed on the sector.
Wholesale sales fell 2.3%, led by the motor vehicle and parts subsector, as about half of manufacturers and 43% of wholesalers reported being affected by the new tariffs.
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