Fewer firms report U.S. tariff hit as manufacturing sales edge up in June

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OTTAWA — Statistics Canada says manufacturing sales edged up June and a smaller share of firms reported an impact from U.S. tariffs.

The agency said Friday that manufacturing sales in June rose 0.3 per cent to $68.5 billion, breaking a streak of four consecutive monthly declines.

Petroleum and coal sales increased 11.8 per cent to $6.8 billion in June, while the food product subsector gained 2.5 per cent to reach a record $13.2 billion.

Meanwhile, the transportation equipment subsector fell five per cent to $10.5 billion in June, the lowest level since November 2022, as sales of motor vehicles fell 9.4 per cent and motor vehicle parts lost 2.8 per cent.

Firms continue to report headwinds from Canada’s tariff dispute with the United States, though there are signs some manufacturers are avoiding the trade disruption.

Roughly 40 per cent of manufacturing firms surveyed by Statistics Canada reported being affected by U.S. tariffs in June, down from 50 per cent in May and 60 per cent in April.

Price increases, higher expenses for raw materials, shipping or labour and changes in demand were the most commonly cited impacts of the tariffs.

The primary metal, machinery, fabricated metal and transportation subsectors were most likely to report tariff hits in June, with Ontario standing out as the province with the biggest sales decline attributed to the import duties.

Early in June, U.S. President Donald Trump doubled global tariffs on steel and aluminum entering the United States to 50 per cent.

In constant dollars, Canada’s total manufacturing sales were unchanged in June.

In a separate report, Statistics Canada said wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.7 per cent to $84.7 billion in June.

In volume terms, wholesale sales, excluding those items, rose 0.6 per cent.