Canada Industrial National Report

Outlook remains optimistic. The first quarter of 2025 was a tumultuous period. Intermittent tariff threats from the United States shook business confidence, prompting fears of an imminent recession. As the actual tariffs imposed were far less severe than initially feared, however, those pessimistic expectations may be overstated. This short-lived setback had limited impact on the industrial sector as a result. Fundamentals held steady throughout the quarter. Looking ahead, the outlook for 2025 is still positive, supported by easing tensions following upcoming bilateral trade negotiations with the U.S. Over the longer term, progress in liberalization of internal trade and efforts in diversifying export markets are expected to serve as catalysts for the next phase of growth in Canada’s industrial sector.