Canada Wholesale Trade Rises Amid Tariff Concerns

Canada's wholesale sales increased by 0.3% month-over-month to $85.7 billion in February 2025, slightly below the forecasted 0.4% growth. This rise was primarily driven by the machinery, equipment, and supplies subsector, which saw a 7.1% increase, notably within the computer and communications equipment industry group. The motor vehicle and parts subsector experienced a significant decline of 3.1%, attributed to the impact of U.S. auto tariffs implemented by President Donald Trump. The increase was observed in two of the seven subsectors, with Ontario leading the provincial gains. Inventory levels rose by 2.2%, suggesting businesses are stockpiling in anticipation of tariff-related disruptions. Despite the gains, analysts remain cautious about future trends amid fluctuating conditions in various sectors.