Factory sales slip as Trump dates 2027 auto tariffs and Canada orders icebreakers
July factory sales in Canada slipped 0.2 per cent as Ottawa ordered six icebreakers worth more than 11 billion dollars and Donald Trump set 1 January 2027 for 50 per cent auto and steel tariffs.
Economics & Markets··Night
A soft flash reading for July factories
July manufacturing sales in Canada most likely fell 0.2 per cent from June, according to a seasonally adjusted flash estimate from Statistics Canada. Chemical products and fabricated metal products accounted for most of the decline. The estimate rests on a weighted response rate of 69.8 per cent, well below the 92.5 per cent average of the previous 12 months, so the reading carries more revision risk than a usual flash estimate. The figure is a preliminary look at factory shipments, not a final monthly bulletin, and it leaves open a larger than usual chance that later responses will move the print.[1]
Six icebreakers for an ageing Coast Guard fleet
Prime Minister Mark Carney announced the programme in Levis, Quebec. The order covers six Coast Guard icebreakers worth more than 11 billion Canadian dollars, with construction assigned to the Chantier Davie shipyard to replace ageing heavy and medium icebreakers. Canada operates the world's second-largest icebreaker fleet after Russia, and its ships regularly assist United States vessels in the Arctic. Carney has said Canada should be able to protect its Arctic territory without depending on other countries. The Chantier Davie order is a replacement programme for that ageing heavy and medium icebreaker fleet.[2]
A 2027 date for auto, parts and steel tariffs
Donald Trump said tariffs on Canadian automobiles, auto parts and steel would rise to 50 per cent on 1 January 2027 after bilateral trade talks collapsed. Ontario Premier Doug Ford said Canada should be prepared to restrict electricity and critical-mineral supplies if the dispute worsens. The new threat puts the tightly integrated North American vehicle supply chain at the centre of the confrontation. The 1 January 2027 date names automobiles, auto parts and steel after talks collapsed; Ford's warning covers electricity and critical minerals if that dispute worsens.[3]
