Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news concerning manufacturing, e.g. textile and apparel, chemical, electronics, wood and paper, metals, plastics and rubber, packaging, and machining. Every Monday, we break down the most important updates in this space in under five minutes.

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Start Date: 2025-05-04
End Date: 2025-05-10

Top Headlines

Main Stories

Remission Framework Introduced for U.S. Auto Tariffs

The Government of Canada established the United States Surtax Remission Order (Motor Vehicles 2025) on May 7, 2025, creating a framework for relief from 25% surtaxes on passenger vehicles and certain trucks imported from the U.S. Eligible vehicles must be CUSMA-originating and imported between April 9, 2025, and April 8, 2026, with remission claims allowed within two years of import. The arrangement ties duty-free import allowances to Canadian production levels, with provisions for facilities undergoing retooling. Confidentiality is maintained on the quantity of duty-free imports allocated to each manufacturer. This measure is intended to relieve financial pressure on Canadian-based auto assemblers and sustain cross-border supply chain integration.

Sources: Canada Gazette, Part II: www.gazette.gc.ca

Silicon Metal Anti-dumping and Subsidizing Order Extended Against China

On April 30, 2025, the Canadian International Trade Tribunal continued its order regarding anti-dumping and subsidizing measures on silicon metal containing between 89% and 99.99% silicon by weight from China. The Tribunal found that expiry of the order would likely result in injury to the domestic industry, and therefore extended the order without amendment. The measure covers all forms and sizes of the specified silicon metal, including those containing aluminum above 0.20% by weight.

Sources: Gazette, Part I: www.gazette.gc.ca

Expiry Review Initiated on Carbon Steel Screws from China and Taiwan

On May 5, 2025, the Canadian International Trade Tribunal initiated an expiry review of its existing anti-dumping and countervailing order covering certain carbon steel fasteners from China and Taiwan. The review will determine whether the lapse of the order could lead to resumed or continued dumping or subsidization and injury to Canadian producers. The Canada Border Services Agency is tasked with determining the likelihood of resumed dumping or subsidization by October 2, 2025, followed by a Tribunal injury determination by March 11, 2026, if necessary. Interested parties can file notices of participation for the review.

Sources: Announcements: www.canada.ca

No Reasonable Indication of Injury from U.S. Renewable Diesel Imports

The Canadian International Trade Tribunal, on May 5, 2025, concluded that evidence does not show a reasonable indication that dumping or subsidizing of renewable diesel from the United States has caused or threatens to cause injury to Canadian industry. As a result, the Tribunal terminated its preliminary injury inquiry, and the Canada Border Services Agency will end its related dumping and subsidizing investigations.

Sources: Announcements: www.canada.ca

Canada's Merchandise Trade Deficit Narrows in March 2025

Statistics Canada reported that in March 2025, merchandise exports declined by 0.2% while imports fell by 1.5%. This contraction reduced the national trade deficit from $1.4 billion in February to $506 million in March, reflecting shifts in international trade flows relevant to manufacturing and export sectors.

Sources: Open Government Data Set: www.statcan.gc.ca

Important Updates

Secondary Stories

Remission Order Targets Short Supply and Public Sector Needs

A remission order effective April 16, 2025, permits relief from U.S. import surtaxes in cases where goods are in short supply or needed for public health, safety, or essential manufacturing inputs. Products such as specialized nutrition formulas, medical compression garments, and sterile packaging are included.

Sources: Canada Gazette, Part II: www.gazette.gc.ca

Lumber Production Down in February 2025

National lumber production fell 4.8% from January to 3,686.8 thousand cubic metres in February 2025, and was 15.3% below levels from February 2024.

Sources: Open Government Data Set: www.statcan.gc.ca

CFIA Marks International Day of Plant Health

The Canadian Food Inspection Agency issued information ahead of May 12, 2025, on plant health risks, noting invasive species can disrupt critical economic activities, including food production and forestry.

Sources: Announcements: www.canada.ca

Provincial Announcements

Ontario Expands Manufacturing Investment Tax Credit

Ontario will increase its Manufacturing Investment Tax Credit rate from 10% to 15% for Canadian-controlled private corporations and expand eligibility to non-Canadian-controlled firms, with a cap of $3 million per year.

Sources: Provincial Announcement: news.ontario.ca

Ontario Approves Construction of First G7 Small Modular Reactor

Ontario Power Generation received provincial approval to begin building the first of four small modular reactors at Darlington, aiming to supply 1,200 MW for 1.2 million homes and support up to 18,000 jobs.

Sources: Provincial Announcement: news.ontario.ca

Ontario Announces $1 Billion Skills Development Fund Expansion

Ontario is expanding its Skills Development Fund by $1 billion over three years, targeting worker retraining for sectors impacted by tariffs, including manufacturing and health care.

Sources: Provincial Announcement: news.ontario.ca

Workplace Injury Results in $70,000 Fine for Etobicoke Manufacturer

Spacefile International Corp. was fined $70,000 after a worker was critically injured on a brake press lacking required safety guarding.

Sources: Provincial Announcement: news.ontario.ca

Ontario Enforces Environmental Protection Act Violations

Two individuals were fined a combined $4,900 for failing to comply with orders to remove construction and demolition waste and submit required documentation.

Sources: Provincial Announcement: news.ontario.ca

Unlicensed Aggregate Extraction Brings $187,500 Fine

Crosstown Construction Inc. was convicted and fined $150,000 plus surcharge for operating a sand and gravel pit without a licence, removing over 10,000 tonnes between 2020 and 2022.

Sources: Provincial Announcement: news.ontario.ca

Individual Fined $10,000 for Discharging Sewage Near Waterway

Christopher Reid was fined $10,000 for discharging raw sewage into Sandusk Creek after a pumper truck became stuck at a disposal site in Selkirk, Ontario.

Sources: Provincial Announcement: news.ontario.ca

Public Officials' Social Media

François-Philippe Champagne Visits General Dynamics Valleyfield Site

MP François-Philippe Champagne visited General Dynamics in Valleyfield, highlighting its role in domestic defence manufacturing.

Sources: Social Media: x.com

Jamil Jivani Supports Darlington Nuclear License Renewal

MP Jamil Jivani announced his support for renewing the Darlington Nuclear Generating Station operating license, referencing the industry's role in the national economy.

Sources: Social Media: x.com

Jasraj Singh Hallan Comments on Alberta Energy Sector

MP Jasraj Singh Hallan noted Alberta's energy sector continues to contribute over $120 billion to the economy despite policy challenges.

Sources: Social Media: x.com

Senator Robert Black Visits Dairy Distillery in Almonte

Senator Robert Black visited Dairy Distillery, observing the use of dairy byproducts in beverage production and referencing support for local farmers.

Sources: Social Media: x.com

What We're Reading This Week

• Ontario to include expanded manufacturing tax credit in coming budget: Reports on Ontario's move to enhance manufacturing competitiveness through tax incentives.
• Ontario to include expanded manufacturing tax credit in upcoming budget: Details the expected changes to Ontario's manufacturing tax credit program.
• Ontario to include expanded manufacturing tax credit in upcoming budget: Covers the financial implications of tax credit expansion for Ontario manufacturers.
• Analysts Offer Insights on Industrial Goods Companies: Accelleron Industries AG, Montrose Environmental Group, and AFRY AB: Industry analysts discuss current performance and outlooks for major industrial goods firms.