Conservatives press Ottawa for action as U.S. tariffs squeeze Ontario mould makers

OTTAWA — Four Conservative MPs are urging Parliament to move quickly on what they describe as a growing crisis for Canada’s mould-making, tool-and-die and machining sector after new U.S. tariff rules sharply increased costs on some cross-border shipments. The issue is centred in Ontario and Quebec, but it also matters in Thunder Bay and Northwestern Ontario because prolonged disruption in Ontario’s manufacturing base can ripple through transportation corridors, industrial suppliers and other export-linked businesses across the province.

Opposition calls for emergency study of tariff impacts

In a joint statement, Chris Lewis, Kathy Borrelli, Dave Epp and Harb Gill said the sector is worth $16 billion and that as much as half of its mould output is exported to the U.S. They said more than 90 per cent of the industry is based in Ontario and Quebec, with Windsor-Essex alone accounting for an estimated $2 billion to $3 billion a year in exports. The MPs called for an emergency study and said Ottawa must do more to protect manufacturers and the jobs tied to them.

The Conservatives said the latest U.S. tariff changes have created immediate cost pressure for firms that build precision tooling and industrial components. In their statement, they pointed to Windsor-based Cavalier Tool, saying the cost to ship a single tool rose from about US$1,400 to US$36,000. NetNewsLedger has not independently verified that company-specific figure.

What changed under the U.S. tariff rules

The complaint is tied to a White House proclamation issued April 2, 2026, that broadened how certain Section 232 tariffs are applied. Effective April 6, the order says tariffs on aluminum and steel articles, certain copper articles and some derivative products are to be applied to the full customs value of the imported product, regardless of metal content. The same order sets some full-value tariff rates at 50 per cent, while certain copper articles and some aluminum and steel derivative articles are generally set at 25 per cent.

That distinction is central to the industry’s argument. Companies that previously faced tariffs tied more narrowly to metal content now say they are being hit on the full value of highly engineered products, which can dramatically increase the duty bill on a finished tool, mould or industrial component. The Conservative MPs said that, in some cases, the increase amounts to thousands of per cent.

Ottawa says support programs are in place

The federal government has said it is already responding to U.S. tariff pressure with countermeasures and support programs. Ottawa says Canada kept counter-tariffs in place on U.S. steel, aluminum and automobiles, even after removing other retaliatory tariffs in September 2025.

Federal support pages also list tariff-related help for businesses and workers, including the Regional Tariff Response Initiative, the Strategic Response Fund, the Large Enterprise Tariff Loan facility, duty relief and drawback programs, and export support for companies trying to adjust to the new trade environment.

In Ontario, the federal and provincial governments announced in March that the Canada-Ontario Workforce Tariff Response would provide $228.8 million over three years to support workers in steel, automotive, softwood lumber and other tariff-affected sectors. Ottawa has also said broader national tariff-response measures now total more than $6.5 billion.

Why the story matters in Northwestern Ontario

Thunder Bay is not the centre of Canada’s mould-making industry, but the broader trade fight still matters across Northwestern Ontario.

Federal briefing material says U.S. tariff actions are weighing on goods-producing sectors and disrupting integrated North American supply chains. That means any prolonged slowdown in Ontario manufacturing can also put pressure on regional trucking, rail, fabricated-metal suppliers, equipment maintenance shops and resource-linked businesses that depend on stable industrial demand. That is an inference based on the federal government’s description of how tariff disruptions spread through supply chains.

For now, the Conservatives are using the issue to press the Carney government for faster action with Washington and for closer parliamentary scrutiny of the fallout on Canadian manufacturing. The broader trade dispute remains fluid, and further changes on either side of the border are possible.