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: 2025-12-14 to 2025-12-20

📋 In This Week's Newsletter

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

Canadian Federal Government News

Federal Government Implements New Buy Canadian Policy for Procurement

The Government of Canada has put the Buy Canadian Policy into effect as of December 16, 2025, transforming practices related to federal procurement. Under the policy, federal departments and agencies are required to prioritize Canadian suppliers and Canadian content for major procurements. The approach will initially apply to contracts valued at $25 million and above, reducing to $5 million by spring of 2026. Additional points will now be awarded in bid evaluations for the extent of Canadian content offered, encompassing items manufactured, researched, or developed in Canada. Concurrently, use of domestically produced steel, aluminum, and wood is required in all federal construction and defence projects above $25 million when supply is available. Suppliers must certify use and maintain required documentation. Small and Medium Business Procurement Program, and a full Policy on Reciprocal Procurement, are slated for spring 2026. The new regime also features exceptions for cost or public interest, with ministerial approval necessary. These changes affect procurement, supply chain, and eligibility for manufacturing firms operating in Canada.

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

Canadian International Trade Tribunal Continues Anti-dumping Duties on Hot-rolled Steel Plate Imports

On December 17, 2025, the Canadian International Trade Tribunal (CITT) extended its March 2020 order on anti-dumping duties for hot-rolled carbon steel plate imported from Brazil, Denmark, Indonesia, Italy, Japan, and Korea. This decision upholds anti-dumping measures after determining that expiry of the order would likely injure the domestic market. The ruling directs the Canada Border Services Agency to maintain duties, impacting importers and Canadian steel manufacturers. CITT continues to address trade, tariff, and safeguard complaints involving the manufacturing sector.

Sources: www.canada.ca

Government Launches Engagement to Strengthen Industrial Carbon Pricing Benchmarks

Environment and Climate Change Canada has begun a national engagement to review the minimum stringency standards for industrial carbon pricing, also known as the federal benchmark criteria. Feedback collected will inform changes to the benchmark in 2026. Announced on December 19, the engagement targets clarity for decarbonization investments and aims to maintain industrial competitiveness. The policy is a component of Budget 2025’s Climate Competitiveness Strategy, encouraging large emitters to lower their emissions. Updates to pollution pricing regimes and carbon markets may affect investment flows, revenue-generation options, and eligibility across the manufacturing sector. Collaboration with provinces and territories is underway.

Sources: www.canada.ca

Final Enhanced Methane Regulations Announced for Oil, Gas, and Landfills

New methane reduction regulations were finalized on December 16, targeting both the oil and gas sector and municipal landfills. The Enhanced Methane Regulations expand requirements for leak detection, repair, and venting controls beyond those set in 2018, effective for onshore oil and gas production, gas processing, LNG, and transmission facilities. The government estimates a total reduction of 304 Mt CO2e and 1,593 kt volatile organic compounds between 2028 and 2040. Regulations for landfills enforce monitoring and repairs for methane leaks at publicly and privately owned sites. Associated federal funding totals $16 million across eight methane mitigation technology projects under the Energy Innovation Program, with additional commitments for research at Carleton University.

Sources: www.canada.ca

Canadian Climate Institute Selected to Lead Sustainable Investment Taxonomy Development

On December 18, the Department of Finance announced the Canadian Climate Institute would head the development of Canada’s sustainable investment guidelines, also called a taxonomy. Work will be conducted in collaboration with Business Future Pathways and include representation from major financial institutions, technical experts, and industry participants. The taxonomy is intended as a voluntary market tool to classify ‘green’ and ‘transition’ investments and promote compatibility with global frameworks. A Taxonomy Council will review guidelines, targeting three priority sectors by end-2026 and three more by fall 2027. Outcomes of this process will be influential for manufacturing firms seeking to attract capital for decarbonization, clean tech, and related projects.

Sources: www.canada.ca

Federal Support for Manufacturing Businesses Facing Tariff Pressures

A backgrounder released December 17 details federal support for manufacturing firms dealing with tariff-related challenges, via Canada Economic Development for Quebec Regions. Support mechanisms focus on business resilience, supply chain adaptation, and competitiveness. This initiative includes financial contributions and programs available through federal channels.

Sources: www.canada.ca

Government of Canada Invests $400,000 in Quebec-based Opsun Systems

Opsun Systems Inc., a designer and manufacturer of solar panel mounting structures for various building types, has secured $400,000 in repayable federal funding to support product innovation and international expansion. The investment, made through the Regional Economic Growth through Innovation program, aims to boost the company’s presence in foreign markets while strengthening its integration into Canadian value chains. The Quebec manufacturing sector’s economic footprint includes 13,601 businesses, $219.1 billion in sales, and over 501,500 employees as of 2024.

Sources: www.canada.ca

Government of Canada Announces $5 Million Investment in Southwestern Ontario Manufacturers

FedDev Ontario has allocated more than $5 million to Hydra Dyne Technology Inc., Future Transfer Co. Inc., and Melnik Resources for facility upgrades, automation adoption, and supply chain strengthening. Hydra Dyne, specializing in hydraulic components, will use its $2 million for automation in heavy equipment manufacturing. Future Transfer receives $2.5 million to expand automated logistics for crop protection supply chains. Melnik Resources, awarded over $530,000, will modernize its metal solutions facility. These measures are intended to reinforce local supply chains and manufacturing capability in southern Ontario.

Sources: www.canada.ca

Minister Mélanie Joly Set for Fireside Discussion on Industrial Strategy in Montréal

Minister of Industry Mélanie Joly will attend a fireside chat at the Chambre de commerce de l’Est de Montréal on December 17, joined by Quebec government and municipal officials, to discuss integrated industrial strategy and cross-governmental collaboration. The session will address industry opportunities, innovation, and economic policy for the region.

Sources: www.canada.ca

Federal Measures to Support Forest Sector Businesses

Natural Resources Canada has launched a single-window pathfinding service, announced $9 million under the Green Construction through Wood program, and created the Canadian Forest Sector Transformation Task Force. Recent support measures include $2.35 billion in competitive and transformation-focused funds, expanded softwood lumber guarantee programs, and prioritized federal procurement of Canadian lumber under Build Canada Homes. Additional features include freight rate discounts and upskilling funding for affected workers. Canada’s forest sector remains a priority amid tariff pressures and market changes.

Sources: www.canada.ca

Beausite Métal Inc. Fined for Failure to Comply with Environmental Protection Order

On December 18, Beausite Métal Inc. was fined $40,000 by the Court of Québec for failing to comply with a federal environmental protection compliance order under the Canadian Environmental Protection Act, specifically provisions related to PCB disposal. The company must implement corrective measures, and its name will be added to the Environmental Offenders Registry. The fine is directed to the Environmental Damages Fund.

Sources: www.canada.ca

Canadian Provincial Government News

Ontario Announces $16.5 Million in Tariff Relief Through Ontario Together Trade Fund

Ontario is providing $16.5 million in first-round funding to eight manufacturers facing U.S. tariffs, targeting supply chain reshoring, automation, and market diversification. Recipients include Aisin Canada, ArcelorMittal Tailored Blanks, Burnco Manufacturing, and others.

Sources: news.ontario.ca

BC Manufacturing Jobs Fund Invests Nearly $8 Million in Vancouver Island Wood Manufacturers

Western Forest Products and Island TimberFrame will receive nearly $8 million to expand production of value-added wood products under the BC Manufacturing Jobs Fund, supporting kiln installation and advanced manufacturing upgrades.

Sources: news.gov.bc.ca

Nova Scotia Approves Sustainable Aviation Fuel Project in Guysborough County

Nova Sustainable Fuels has received environmental approval for phase one of a renewable energy park in Goldboro that will produce low-emission aviation fuel from forestry waste biomass.

Sources: news.novascotia.ca

Ontario Sets Criteria for Special Economic Zones Regulation Effective January 2026

Ontario finalized criteria for designating Special Economic Zones, intended to expedite major investment projects and protect industries affected by U.S. tariffs. The regulation was informed by Indigenous and stakeholder consultations.

Sources: news.ontario.ca

Ontario Publishes Draft Regulation for Mutual Recognition Under Free Trade and Mobility Act

Ontario has issued a draft regulation under the Ontario Free Trade and Mobility Act to mutually recognize goods and services approved in reciprocating Canadian jurisdictions, removing local retesting, approvals, and reducing compliance timeframes for in-scope products.

Sources: news.ontario.ca

Government Consultations

Consultation Open on Strengthening Canada’s Industrial Carbon Pricing Benchmark

Environment and Climate Change Canada is soliciting feedback on proposed changes to the federal benchmark criteria for industrial carbon pricing systems, with consultation open until January 30, 2026.

Sources: www.canada.ca

Health Canada Consults on Registration of Benzoic Acid and Microban Additive GS for Industrial Use

Health Canada is seeking comments by January 15, 2026, on the proposed registration decision for benzoic acid and Microban Additive GS for use in material preservation for industrial plastics, textiles, paints, and coatings.

Sources: www.canada.ca

Public Input Requested on Environmental Emergency Regulations Review

Environment and Climate Change Canada is engaging stakeholders to assess and improve the Environmental Emergency Regulations, focusing on implementation challenges and regulatory burden.

Sources: www.canada.ca

What We're Reading This Week

• ANALYSIS | Where are all the manufacturing jobs Trump promised: Discussion of job market impacts of U.S. trade and manufacturing policy.
• Local manufacturing companies receive funding boost to help businesses weather tariff storm: Coverage of southwestern Ontario manufacturers receiving federal support.
• How oilsands byproducts could be the future of carbon fibre: Examination of technological advances in carbon fibre from oilsands.
• THE FOUNDATION TRADE: 5 Assets Anchoring the Next Industrial Cycle: Analysis of critical assets for the incoming industrial cycle.
• India’s push for battery recycling promises jobs, clean energy and mineral security: Updates on global battery recycling efforts.
• Inside the warehouse poised to process your unwanted gifts this holiday: Look into reverse logistics for consumer returns.
• New Survey of Nearly 4,300 C-suite Leaders Reveals Intensifying Demand for Faster Innovation, Higher ROI and Stronger Business Resilience: Survey results on innovation trends in industry leadership.
• Environmental and Clean Technology Products Economic Account, 2024: StatsCan data on sector GDP performance in 2024.
• Annual Survey of Manufacturing Industries, 2024: StatsCan reports minor decrease in manufacturing sector revenues.
• Logging, 2024: Logging industry revenue uptick detailed by StatsCan.

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