Canada Manufacturing, Wholesale Sales Fall Sharply in April Amid Tariff Impact

Canada's manufacturing and wholesale sectors experienced significant declines in April 2025, primarily due to the impact of U.S. tariffs under President Donald Trump's administration. Manufacturing sales dropped 2.8% to C$69.6 billion, marking the largest decrease since October 2023 and the lowest level since January 2022, driven mainly by steep declines in petroleum, motor vehicles, and primary metals. Wholesale sales fell 2.3% to CAD 84 billion, the sharpest drop since June 2023, with notable reductions in motor vehicles and miscellaneous merchandise, although food, beverages, and tobacco sales rose slightly. Approximately half of Canadian manufacturers reported adverse effects from U.S. tariffs, including price increases, higher raw material and labor costs, and altered product demand, while factory employment has declined by nearly 55,000 in recent months. The inventory-to-sales ratio in wholesale trade increased, signaling potential stockpiling amid weakening demand. These developments underscore the growing challenges faced by Canada's trade-exposed sectors amid ongoing trade tensions with the U.S.