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.

Want to track the upstream and downstream forces affecting Manufacturing? Don’t miss this week’s updates in Mining and Oil & Gas.

Dates: 2025-09-21 to 2025-09-27

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 💬 Government Consultations
• 📚 What We're Reading This Week

Canadian Federal GR News

Government of Canada launches consultation to phase out PFAS use in firefighting foams

On September 26, 2025, Environment and Climate Change Canada began public consultation on Phase 1 of risk management for per- and polyfluoroalkyl substances (PFAS), excluding fluoropolymers, focusing on phasing out unregulated PFAS in firefighting foams. The government published a consultation document for stakeholders, with input accepted until November 25, 2025. The regulatory proposal aims to address all remaining uses of PFAS in firefighting foams, citing concerns over contamination in drinking water and industrial environments, including civil and military aviation and chemical sectors. The proposed actions build on March’s State of Per- and Polyfluoroalkyl Substances report under CEPA, which found PFAS (excluding fluoropolymers) toxic and eligible for inclusion in Schedule 1, Part 2 of CEPA. Once listed, risk management instruments can be developed. Multiple regulatory updates are underway, including the addition of 163 PFAS to the National Pollutant Release Inventory in 2025 and recent interim limits for PFAS in fertilizers. Stakeholders are invited to comment on practical alternatives and impacts for industry before regulatory proposals are finalized.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca, Canadian Government Consultations: canada.ca

Federal tariff-response supports for Windsor automotive sector

On September 26, 2025 in Windsor, Minister Rechie Valdez announced tariff-response measures supporting Ontario auto workers and manufacturers affected by US trade actions. The package includes $450 million in reskilling for 50,000 workers, further EI support of up to 65 weeks for long-tenured workers, and extended suspension of separation-payment rules. Businesses will access $5 billion via the Strategic Response Fund for adaptation, diversification, and securing new markets, while the Regional Tariff Response Initiative adds $1 billion in available funding and expands non-repayable contributions for SMEs in impacted sectors. The Business Development Bank of Canada increased the maximum loan size for SMEs to $5 million; the Large Enterprise Tariff Loan Facility offers flexible financing for larger firms. Workforce alliances will receive $382 million, and a new Sectoral Workforce Investment Fund is being launched. The measures are designed to support stability in employment and operations during ongoing trade uncertainty.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca

Government expands industry-higher education workforce collaboration

On September 23, 2025, Minister Mélanie Joly detailed expanded federal support for the Business + Higher Education Roundtable (BHER) to facilitate additional work-integrated learning (WIL) placements between private sector employers and post-secondary institutions. The new phase targets 8,000 student placements and direct engagement with 2,500 more private sector companies by March 2028, building on BHER’s creation of 22,300 placements from 2022-2025. Francophone students in Quebec and across Canada are a particular focus of these initiatives. The measures are positioned to augment workforce readiness and provide businesses increased access to skilled talent during ongoing automation and technological change affecting manufacturing.

Sources: Announcements: www.canada.ca

Canada’s Competition Summit gathers market leaders in Ottawa

The Competition Bureau will convene Canada’s Competition Summit 2025: Competition in a New Economy, on October 1, featuring Minister Mélanie Joly and Bank of Canada Senior Deputy Governor Carolyn Rogers. Thought leaders will discuss strategies for improving market function, lowering costs, and driving business innovation amid evolving economic conditions. Sessions will analyze impacts of competition policy on manufacturing and related sectors. The summit is open for virtual attendance and targets public, private, academic, and international participants.

Sources: Announcements: www.canada.ca

Advance indicator shows manufacturing sales dropped in August

Statistics Canada’s advance results point to a 1.5% decline in total manufacturing sales for August 2025, with transportation equipment and food subsectors showing the largest decreases. This preliminary estimate provides early signals for production volumes and supply chain movements, with final numbers expected later. The data may inform near-term adjustments to procurement and inventories in these subsectors.

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

Industrial Product Price Index edges higher in August

In August 2025, the Industrial Product Price Index rose 0.5% month-over-month and 4.0% year-over-year, according to Statistics Canada. By contrast, the Raw Materials Price Index fell 0.6% for the month but gained 3.2% annually. Manufacturers may find differentiating trends for input costs versus selling prices, with implications for gross margins depending on sector exposure.

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

Real GDP up 0.2% in July, ends four-month slide

Statistics Canada reports that real gross domestic product rose 0.2% in July 2025, breaking a four-month pattern of declines. The uptick suggests modest output increases across several industries, although the full industry breakdown is published separately.

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

Natural resources sector sees largest quarterly decline since 2020

Canada’s real GDP for the natural resources sector fell 2.4% in Q2 2025, after a 1.8% increase in Q1—the largest quarterly decrease since Q2 2020. The downturn comes amid weak demand or supply disruptions and may affect commodity producers, suppliers, and equipment manufacturers, with sector-specific details available in the full quarterly release.

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

Government invests in AI strategy, innovation clusters at ALL IN 2025

Ministers Mélanie Joly and Evan Solomon attended the ALL IN event in Montréal, a flagship for AI and digital innovation. Joly reaffirmed support for secure and sovereign AI applications in digital technology, advanced manufacturing, and infrastructure. Solomon announced a new AI Strategy Task Force, signaling further federal engagement with researchers, startups, and industry leaders to design the next phase of Canada’s AI strategy. The government stressed the need to manage risks associated with rapid AI development, and discussions involved defense, cybersecurity, and enterprise agents for manufacturing and supply chains.

Sources: Announcements: www.canada.ca

NRC IRAP and Innovate BC invest $1.5M in B.C. cleantech pilots

On September 24, 2025, the National Research Council of Canada’s IRAP and Innovate BC jointly awarded $1.5 million through the BC Fast Pilot program for 11 SMEs piloting clean technologies. The funding supports design, build, and deployment of prototype solutions in real industrial settings, facilitating customer validation and measuring value for sectors managing adoption risks. Participating firms may demonstrate technologies applicable to manufacturing emissions, recycling, and process optimization.

Sources: Announcements: www.canada.ca

Federal Economic Development Agency for Southern Ontario set to announce new support for London region businesses

On September 26, 2025, the Federal Economic Development Agency for Southern Ontario announced an upcoming event to support innovation among rural and urban businesses in the London area. Parliamentary Secretary Peter Fragiskatos and Minister Arielle Kayabaga will deliver details on new federal programs at TechAlliance of Southwestern Ontario, aiming to drive advanced manufacturing, technology adoption, and critical sector development.

Sources: Announcements: www.canada.ca

FedNor to announce support for technology and AI-driven solutions in Northern Ontario

Viviane Lapointe, MP for Sudbury, is scheduled to announce new FedNor funding on September 29, 2025, targeting Greater Sudbury businesses and First Nations. Delivered on behalf of Minister Patty Hajdu, initiatives will promote new technologies, including AI, with accent on support for key sectors and Indigenous communities.

Sources: Announcements: www.canada.ca

Government of Canada invests $8 million in low-carbon workforce training for Northwest Territories

The Honourable Rebecca Alty, Minister of Crown-Indigenous Relations, announced over $8 million in federal investment through the Sustainable Jobs Training Fund on September 26, 2025. The program—led by the Mine Training Society—will deliver in-person skills training to 1,850 workers, including Indigenous populations in remote regions. The project will form an advisory committee of employers and stakeholders to ensure training is matched to industry need, supporting transition to low-carbon jobs.

Sources: Announcements: www.canada.ca

US Federal GR News

U.S. launches Section 232 investigation into robotics and industrial machinery imports

On September 2, 2025, the U.S. Department of Commerce initiated a national security investigation under Section 232 covering imports of robotics and industrial machinery, including CNC centers, metalworking equipment, and programmable mechanical systems. Public comments are sought until October 17, 2025, with particular interest in the import concentration, supply risks, foreign subsidies, and possibility of further trade barriers or adjustments. The investigation will consider domestic production capabilities, employment impacts, and foreign control or exploitation of machinery supply chains. Items such as unmanned aircraft systems are excluded. A final determination will inform possible policy actions regarding tariffs or quotas.

Sources: U.S. Federal Announcements: www.federalregister.gov

Section 232 inquiry opens on personal protective equipment and medical devices

The Department of Commerce has begun a Section 232 investigation into the national security implications of imports of personal protective equipment (PPE), medical consumables, and durable medical devices. The notice solicits comments on supply chain risks associated with foreign concentration and price suppression, feasibility of expanding domestic production, and potential security concerns related to foreign-built equipment. Comments are due by October 17, 2025.

Sources: U.S. Federal Announcements: www.federalregister.gov

Preliminary critical circumstances found for Taiwanese monomers and oligomers

The Department of Commerce, on September 22, 2025, determined preliminarily that critical circumstances exist for imports of certain monomers and oligomers from Taiwan, indicating a massive surge of over 15% in shipments during the comparison period. Subsidies found are inconsistent with the SCM Agreement, including multiple forms of export credit and preferential loans. Liquidation of entries from May 27, 2025 onward is suspended, with provisional cash deposit rates applied until determination is finalized. This development may affect U.S. chemical industry supply chains.

Sources: U.S. Federal Announcements: www.federalregister.gov

Final results: No dumping margin for Belgian stainless steel plate in coils

On September 25, 2025, Commerce released the final review results for Aperam Stainless Belgium N.V. covering stainless steel plate in coils shipped from Belgium, finding no sales below normal value for May 2023 to April 2024. The review included changes to differential pricing analysis in line with recent court rulings, maintaining a zero weighted-average margin. The result sets importer- and producer-specific cash deposit rates and assessment protocols for new entries.

Sources: U.S. Federal Announcements: www.federalregister.gov

Preliminary countervailing duties set for Norwegian silicon metal

Commerce published on September 26, 2025, a preliminary affirmative countervailing duty determination for silicon metal imports from Norway, assigning a 16.87% subsidy rate to Elkem ASA and all other producers/exporters for the period January to December 2024. The case aligns with an ongoing antidumping investigation for silicon metal. Liquidation of entries is suspended pending final determination, with cash deposits required on new imports according to the preliminary rates.

Sources: U.S. Federal Announcements: www.federalregister.gov

Canadian Provincial GR News

Nova Scotia introduces the Making Business Easier Act

Nova Scotia tabled legislation aimed at reducing red tape and modernizing permitting for mining and natural resource sectors, expecting annual savings of $800,000 for businesses and improved supply chain efficiency.

Sources: Provincial Announcement: news.novascotia.ca

Ontario invests $30 million more to support forestry sector

Ontario announced another $30 million in funding for forest access roads and sawmills, increasing the Provincial Forest Access Roads Funding Program to $79 million this year and providing immediate support for sawmills to access new chip markets.

Sources: Provincial Announcement: news.ontario.ca

Manitoba launches new Economic Development Strategy

Manitoba’s new strategy includes a $50-million business loan program, modernization of investment tax credits, and expanded apprenticeship and career development efforts to boost productivity and retain young workers.

Sources: Provincial Announcement: news.gov.mb.ca

Quebec launches AI and quantum technology innovation projects call

Quebec opened applications for collaborative projects in responsible AI and quantum technologies, with funding up to $1.5 million per project for eligible consortia, targeting SME adoption and economic returns.

Sources: Provincial Announcement: www.quebec.ca

New Brunswick begins air quality approval public process for gypsum wallboard plant

The government of New Brunswick initiated a 180-day public participation period for renewal of Atlantic Wallboard Ltd.’s Class 1 Air Quality Approval, covering Saint John’s 37 million sq m wallboard facility.

Sources: Provincial Announcement: www2.gnb.ca

Government Consultations

Consultation opens on amending VOC concentration limits for automotive refinishing products

Environment and Climate Change Canada released a consultation document on proposed amendments to the Volatile Organic Compound (VOC) Concentration Limits for Automotive Refinishing Products Regulations, inviting input from stakeholders through November 21, 2025.

Sources: Canadian Government Consultations: www.canada.ca

What We're Reading This Week

• LevelBlue Research Finds Rising Cyber Threats to Manufacturing Are Driving Leaders to Prioritize Cyber Resilience: Research details the impact of rising cyber attacks on manufacturing operations.
• Tech Update: How Erthos is tackling plastic waste — at the source: Erthos pursues strategies for direct reduction of plastic wastage in production.
• New Carbon Capture and Storage Training Program Equips Canadians for Careers in a Low-Carbon Economy: Training program prepares workers for emerging low-carbon sectors.
• Quebec manufacturing sector remained under pressure as trade tensions eased: Quebec’s manufacturing sector faced persistent challenges despite recent reductions in trade tensions.
• Nova Scotia aims to cut red tape with ‘Making Business Easier Act’: Provincial bill designed to reduce regulatory barriers for businesses.
• N.S. government says newly introduced bill will reduce red tape, encourage business: Nova Scotia introduces legislation aimed at facilitating business processes.
• Microplastics are creating huge health problems, and it’s time we do something about it: Coverage examines health risks associated with microplastics pollution.
• LevelBlue Research Finds Rising Cyber Threats to Manufacturing Are Driving Leaders to Prioritize Cyber Resilience: News reflects leader priorities in cyber risk planning.
• LevelBlue Research Finds Rising Cyber Threats to Manufacturing Are Driving Leaders to Prioritize Cyber Resilience: Article adds new insights into threats and risk governance.
• Microplastics are creating huge health problems, and it’s time we do something about it: In-depth look at environmental impacts of microplastics.

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