July 19, 2026 to July 25, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning most types of manufacturing activities (except agricultural, automotive, aerospace, food, and pharmaceutical), e.g. textile and apparel, chemical, electronics, wood and paper, metals, plastics and rubber, packaging, and machining. Once a week, 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. Also consider subscribing to our Manufacturing - Washington edition covering critical GR news south of the border.

📋 In This Week's Newsletter

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

Federal Government News

Canada Responds to U.S. Section 301 Tariffs on Forced Labour Practices

On July 23, 2026, the United States announced that new Section 301 tariffs will be imposed on goods from 60 economies, including Canada, as part of an initiative linked to forced labour practices. Minister Dominic LeBlanc outlined that these tariffs will replace previous Section 122 global tariffs, with USMCA-compliant goods remaining exempt and Canada seeing a 10% rate applied to affected products, lower than the 12.5% for other countries. Canada’s framework to prevent forced labour imports is described as robust, aided by recent legislative enhancements. Further engagement with the U.S. is anticipated concerning tariff policies and Canada-U.S. supply chain interests, particularly as the CUSMA joint review approaches.

Sources: www.canada.ca

FedDev Ontario Invests in Guelph Area Manufacturers

FedDev Ontario announced over $2.1 million in combined funding for three Guelph businesses to enhance manufacturing capabilities and competitiveness. Comoldco Corporation will receive $900,000 towards new equipment, Benmet Steel & Metal Inc. will be granted $700,000 for facility upgrades, and Poly-Nova Technologies Corporation receives over $530,000 to expand domestic tooling and specialized manufacturing. These projects, supported under the Regional Tariff Response Initiative, are expected to improve productivity and resilience amid ongoing global trade pressures.

Sources: www.canada.ca

FedDev Ontario Delivers $40.5 Million to Waterloo and Brant Regional Manufacturers

The Minister for Artificial Intelligence and Digital Innovation, Evan Solomon, announced nearly $40.5 million through the Regional Tariff Response Initiative and Regional Defence Investment Initiative. Support was provided to 23 businesses and organizations including Armour Alloys, Eclipse Automation, Quantum Valley Ideas Laboratories, and XL Tool Inc. Projects range from supply chain modernization to advanced manufacturing, defence, and security technologies. Funding aims to foster domestic technical capacity and market entry, especially for aerospace and defence sectors.

Sources: www.canada.ca

StatsCan Releases June Manufacturing Advance Data

Statistics Canada reported that, for June 2026, total manufacturing sales edged down 0.1%. The decline was mainly attributed to the petroleum and coal product subsector, which saw its largest drop. Excluding this subsector, manufacturing sales grew 2.2% in June. These figures indicate sectoral disparities and suggest continued momentum outside the energy sector.

Sources: www.statcan.gc.ca

Industrial Product and Raw Materials Price Indexes for June

StatsCan's Industrial Product Price Index recorded a 1.4% month-over-month decrease for June, while the year-over-year increase was 12.4%. The Raw Materials Price Index posted a 6.9% decrease for the month, with a 20.7% increase year-over-year. The changes reflect volatility in input prices, which may affect manufacturers' cost structures and pricing strategies.

Sources: www.statcan.gc.ca

Minister Joly Announces Pratt & Whitney Canada Collaboration

At the Farnborough International Airshow in the U.K., Minister Mélanie Joly announced a federal contribution of up to $34 million toward Pratt & Whitney Canada's $275 million modernization project for its aircraft engine manufacturing centre of excellence in Longueuil, Quebec. The engagement supports 650 jobs, strengthens Canada's position in the global aerospace supply chain, and aligns with the Defence Industrial Strategy.

Sources: www.canada.ca

Canada's Delegation Showcases Aerospace, Defence, and Advanced Manufacturing Capabilities at Farnborough

From July 20 to 24, 2026, a federal delegation led by Ministers Joly, MacKinnon, McGuinty, and Fuhr participated in the Farnborough International Airshow. Over 150 Canadian companies were represented, facilitating cross-border partnerships and promoting innovations. Following Farnborough, ministers held additional meetings in London and Spain, seeking investment opportunities and advancing Canadian industrial and transportation priorities.

Sources: www.canada.ca

Minister Joly Announces Modernization Efforts in Aerospace Sector

Minister Mélanie Joly led Canada's delegation at the Farnborough Airshow, meeting with sector leaders to promote Canadian aerospace and defence capabilities. The government works with Pratt & Whitney Canada to advance engine manufacturing and welcomed STRIX's new projects under the Initiative for Sustainable Aviation Technology (INSAT), associated with a $350 million federal investment.

Sources: www.canada.ca

Minister Sidhu Supports Trade and Innovation Initiatives in Saskatchewan

During Ag in Motion, Minister Maninder Sidhu announced over $10 million in funding for agricultural innovation in Saskatchewan. The Minister toured BHP Jansen mine, which is the province's largest private investment and explored export and innovation opportunities at Calian Advanced Technologies. Discussions were held with provincial officials and Indigenous leaders regarding international trade, diversification, and expansion in Indo-Pacific markets.

Sources: www.canada.ca

Canada Launches Public Consultation on Forced Labour in Supply Chains

On July 21, Global Affairs Canada launched public consultations to strengthen measures against forced labour in global supply chains. Stakeholder feedback will help shape the approach to identifying goods produced with forced labour under Bill C-35, and inform due diligence measures for Canadian businesses operating abroad. The consultation is open until August 21, 2026.

Sources: www.canada.ca

Government Launches Tax Measures Draft Legislation Consultation

On July 23, 2026, the Department of Finance released draft legislative proposals covering amendments such as streamlined Disability Tax Credit applications, Investment Tax Credit for Carbon Capture, reinstated accelerated capital cost allowances for LNG facilities, hybrid mismatch arrangements, new GST/HST reverse charge mechanism in telecommunications, and other changes. Stakeholder comments are invited until September 4, 2026.

Sources: www.canada.ca

Provincial Government News

Nova Scotia Advances Critical Minerals Mining with Scotia Mine Restart

The Government of Nova Scotia confirmed the industrial approval for Scotia Mine Ltd. to restart zinc mining operations in Halifax County, expected to create 150 direct jobs. The mining roundtable initiative and other sector developments support local critical minerals production for renewable energy and infrastructure.

Sources: news.novascotia.ca

BC Invests in Critical Metals Hub in the Kootenays

British Columbia is providing $300,300 to establish a critical-metals research and business hub in the Kootenays, facilitating investment, training, and business growth by leveraging opportunities from major nearby mining projects.

Sources: news.gov.bc.ca

Ontario Invests in Aerospace and Defence Sector Readiness

Ontario announced a $2.6 million investment for the Downsview Aerospace Innovation & Research consortium, aimed at supporting collaborative R&D, supply chain resilience, and defence readiness for industry stakeholders amid global trade disruptions.

Sources: news.ontario.ca

BC Consults on Food Processing Land Reserve Rule Changes

The Government of British Columbia is conducting a six-week consultation on proposed regulations allowing food processors to build plants on less suitable Agricultural Land Reserve parcels, provided at least 5% of ingredients are locally grown.

Sources: news.gov.bc.ca

Expansion of Skilled Trades Training in Nanaimo

Vancouver Island University will receive 64 additional trades training seats with provincial funding, enhancing workforce capacity in skilled jobs and aligning with the Look West strategy to deliver 5,000 new seats across BC in 2026-27.

Sources: news.gov.bc.ca

Government Consultations

Consultation on Steel Import Tariff-Rate Quota Administration

Global Affairs Canada is consulting stakeholders on the allocation and administration of import tariff-rate quotas for certain steel goods listed under item 82 of the Import Control List from July 23 to August 19, 2026.

Sources: international.canada.ca

What We're Reading This Week

• Why this manufacturing industry insider thinks the U.S. will soon come around on CUSMA: A perspective from an industry figure on the future direction of U.S. approach to the North American trade pact.

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