As the trade tensions between Canada and the U.S. intensify, many Canadian businesses are feeling the impact of new tariffs, particularly in southern Ontario. Saeid Mohmedi, president of MIS Electronics in Richmond Hill, Ontario, is struggling with uncertainty as tariffs on Canadian-made products, including printed circuit boards, rise to 50%. Despite having a primarily Canadian clientele, many of his clients export their products to the U.S., exposing them to these tariffs. The increased costs are also affecting the procurement of components, often sourced through the U.S. Mohmedi emphasizes the need for Canadians to support local manufacturing, suggesting that businesses could produce goods more cheaply in Canada than importing them from the U.S. He has already initiated a new venture focused on touchless faucets produced domestically using MIS components.
Why It Matters
The Canada-U.S. trade relationship is critical, with Canadian electronics exports valued at approximately $4.1 billion USD. The recent tariffs, introduced as part of ongoing trade disputes, specifically target Canadian-made printed circuit boards, significantly impacting small to medium-sized businesses like MIS Electronics. Historically, trade wars can lead to job losses and economic downturns in affected sectors, which in this case includes the tech and manufacturing industries in Ontario. Such tariffs not only strain business operations but may also prompt a shift towards local supply chains, potentially reshaping the manufacturing landscape in Canada.
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