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3mo ago

Canadian Manufacturing Sales Fall to Lowest Since 2022 as U.S. Tariffs Take Effect

A 2.8% drop in April sales driven by slumps in petroleum, vehicle and metal sectors raises the prospect of downward revisions to Canada’s GDP.

Honda employees work along the vehicle assembly line in Alliston, Ont., on Thursday, April 25, 2024. THE CANADIAN PRESS/Nathan Denette
Employees work on the production line at the Martinrea auto parts manufacturing plant in Woodbridge, Ont., on Feb. 3, 2025. Statistics Canada says manufacturing sales fell 2.8 per cent in April, the largest monthly drop since October 2023, as the tariff dispute with the United States hit the industry.

Overview

  • Manufacturing sales contracted 2.8% in April, marking the steepest month-over-month decline since October 2023.
  • Output levels are at their lowest point since January 2022 after a second consecutive monthly decrease.
  • Sales of petroleum and coal products plunged 10.9%, motor vehicle shipments fell 8.3% and primary metals declined 4.4%.
  • About half of surveyed manufacturers and 43% of wholesalers reported being affected by the first full month of U.S. tariffs on steel, aluminum and automotive goods.
  • Wholesale revenues slipped 2.3%, led by motor vehicle parts and accessories, prompting forecasts for a lower April GDP estimate.