Trump’s latest round of tariffs could mean an especially big financial hit for Canada’s electronic industry, one expert says. The industry, which exports 90 per cent of its electronics to the U.S., would be among the hardest hit by the tariffs, according to the Electro-Federation Canada, a trade group that represents hundreds of electrical and automation companies. Cherith Sinasac, the trade group’s director of government affairs, said the tariffs could impact production on both sides of the border. “Since we signed NAFTA, we have seen an integration of our supply chains for electrical and automation products, both in Canada and the U.S.,” she told CTV Your Morning on Thursday. “We rely on each other,” she added of the industry relationship between Canada and U.S. Trump on Monday announced 50 per cent import duties that would take effect Aug. 19 on a slew of Canadian products ranging from electronic equipment and furniture to dishware, Canadian whisky and down jackets. The tariffs could derail the recent global push towards electrification and tackling the carbon footprint, Sinasac added. “The projection is to double our electrical supply in both Canada and the U.S., and in order to achieve that, we need to have secure supply chain scaling,” Sinasac said. “The tariffs increases the cost for everyone and it prevents us from expanding and investing in the infrastructure that we need in both Canada and the U.S. in order to be energy secure.” She advocated for measures to secure domestic supply chains and ramp up manufacturing in Canada. “We can control our competitiveness here at home,” she said. The group has asked the federal government if there will be domestic content rules, such as requiring products to have a certain percentage of locally made parts in order to qualify for incentives or contracts. “We need to reward those companies who are making the investment here in Canada,” she said. She said the trade group has asked Ottawa for a “bonus structure” for domestic content and to continue with investment tax credits to ensure a competitive environment that also encourages companies to “lay down their footprint” in Canada.
