Ep 36: Made in Canada - Navigating Trade Turbulence

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Tariff threats, labor shortages, and political uncertainty are creating unprecedented challenges for Canadian manufacturers. Matt Conley, Manager of International Trade and Skills Policy at Canadian Manufacturers and Exporters (CME), provides a powerful perspective on navigating these turbulent waters while building resilience in Canada's manufacturing sector.

What once seemed settled — the free trade relationship between Canada, the US, and Mexico — has been thrown into question. As Conley notes, "You should always expect the unexpected in politics." Despite these challenges, he emphasizes that the USMCA agreement has generated billions in prosperity across all three countries, creating countless jobs and making products more affordable for consumers. The solution isn't walking away from the negotiating table but continuing crucial discussions that benefit manufacturing sectors across North America.

For small and medium-sized Canadian manufacturers, specific supports are essential for global competitiveness. CME's blueprint "Securing Canada's Economic Future" outlines 17 proposals to strengthen the sector, from reducing redundant paperwork to improving tax competitiveness through investment incentives for new equipment and technology. With an aging workforce approaching retirement, addressing labor shortages requires both domestic training initiatives and streamlined immigration processes. Currently, disconnects between labor market assessments and immigration components create unnecessary administrative burdens that disproportionately impact smaller manufacturers.

See the blueprint here: https://cme-mec.ca/initiatives/blueprint-to-strengthen-canadian-manufacturing/

Perhaps most critically, Matt suggests that Canadian productivity lags due to internal trade barriers between provinces. Different truck weight regulations and duplicative permitting requirements force manufacturers to navigate multiple regulatory environments within their own country – so much so that some businesses have historically routed products through the US to avoid these interprovincial obstacles. With new tariffs making this workaround unfeasible, addressing these internal barriers has become even more urgent.

Conley's message to the federal government is clear: "You have a fantastic manufacturing sector in Canada with some of the smartest, most capable people willing to work hard and find solutions. Just give them the tools they need." By reducing red tape, eliminating internal trade barriers, and accelerating infrastructure projects, Canada can unleash world-class products across global markets.

Quick Heads up: this episode was recorded on June 6, 2025, so while the news may have changed since this conversation was recorded that thought and ideas still remain relevant.

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Chapters

1. Trade Challenges and Manufacturing Outlook (00:00:00)

2. USMCA's Future and Trade Uncertainties (00:03:28)

3. CME's 17 Policy Proposals (00:07:27)

4. Labor Shortages and Immigration Solutions (00:10:37)

5. Boosting Productivity and Reducing Barriers (00:17:51)

6. Closing Thoughts and Call to Action (00:22:20)