The phrase "Made in Canada" has gained prominence as Canadian businesses adapt to the shifting trade landscape prompted by US tariffs. Au Lit Fine Linens, a prominent Canadian retailer, has embraced this movement by highlighting Canadian-made products in its stores and online. This shift comes in response to the trade war initiated by former US President Donald Trump's tariffs, which have left a significant impact on cross-border trade dynamics. While Canada has long been a successful supplier of raw materials globally, the focus on Canadian-made goods is intensifying amid these tensions.
Au Lit Fine Linens, known for its premium linens, showcases a dedicated section on its website titled "shop all made in Canada," emphasizing products "made right here at home." Despite this patriotic pivot, one-fifth of their stock still originates from the US. Joanna Goodman, associated with Au Lit Fine Linens, expressed her growing frustration with the US market.
"Right now, I'm a little angry. I don't want to invest in American companies."
"It's about having your eggs in one basket. And right now, that basket is very reckless and very precarious."
The trade war has sparked interest in reshoring, a phenomenon where businesses bring manufacturing back to domestic soil. However, a Canadian government report from last year found no significant increase in reshoring activities among businesses. Business leader Sandra Pupatello emphasizes the need for preparation.
"If the going gets tough, Canada is on its own. And if we know that's the case, let us plan for it."
"We've got to be prepared for the worst."
Reshoring requires substantial investment and planning. Economist Randall Bartlett suggests that Canada should concentrate on industries where it holds a comparative advantage, such as renewable energy and processing steel and aluminum.
"Some countries are better at producing some things than other countries are."
In southwestern Ontario, New Protein International is constructing Canada's first soy protein manufacturing plant, a move that underscores the potential for growth in domestic manufacturing. Meanwhile, Rainhouse Manufacturing Canada, based in British Columbia, continues to produce parts for various industries, contributing to Canada's manufacturing landscape.
The North American car industry exemplifies the complexity of integrated supply chains, with parts crossing borders multiple times before final assembly. Although President Trump temporarily spared US carmakers from a new 25% import tax on parts from Canada and Mexico, these tariffs have highlighted vulnerabilities in cross-border supply chains and prompted Canadian businesses to reconsider their strategies.
Ray Brougham noted an increased interest from businesses in collaborating with Canadian partners.
"All of a sudden they are interested in working closer with other Canadian companies."
Despite these developments, reshoring remains a complex endeavor. Randall Bartlett notes that while reshoring is "really obvious" to support, it necessitates significant investment.