Canada’s manufacturing sector took a significant hit in April, experiencing its largest monthly sales decline since October 2023 – a staggering 2.8% drop, according to Statistics Canada (StatCan).

This downturn marks the third consecutive monthly decrease, pushing manufacturing sales to their lowest point since January 2022. Key sectors bore the brunt of the impact, with petroleum and coal product sales plummeting 10.9%, motor vehicle sales falling 8.3%, and primary metals sales dipping 4.4%.

The timing is no coincidence. While the trade dispute with the United States began in March, April saw the full force of US tariffs impacting various Canadian industries, particularly steel, aluminum, and automotive manufacturing. The effects were widespread; approximately half of manufacturers surveyed by StatCan reported feeling the pinch of these tariffs, a sentiment echoed by 43% of wholesalers.

This sharp decline underscores the significant economic consequences of the ongoing trade war and highlights the vulnerability of the Canadian manufacturing sector to external trade pressures.