Ottawa Briefing Warns Trump Could Hit Six More Canadian Industries With Tariffs

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Canada’s tariff risk map is widening again. After targeting metals, vehicles, lumber and other strategic goods, the Trump administration was reported to be considering national-security investigations into six additional industrial categories: large-scale batteries, cast-iron products and fittings, plastic piping, industrial chemicals, power-grid equipment and telecommunications hardware.

The potential measures would be pursued under Section 232 of the U.S. Trade Expansion Act, which allows Washington to restrict imports considered a threat to national security. Consideration of an investigation is not the same as a finalized tariff order, and no specific rates were attached to the reported discussions. Still, the warning matters because the affected products sit deep inside North America’s manufacturing, construction, energy and communications systems. A duty on an obscure component can eventually reach factories, municipal projects, utility bills and household costs.

Large-Scale Batteries Could Put Billions in Investment at Risk

Canada has spent years trying to become more than a supplier of raw battery minerals. Governments and companies have announced investments covering mineral processing, battery materials, cell production, vehicle assembly and recycling. Federal figures placed announced Canadian electric-vehicle supply-chain investments between October 2020 and April 2024 at approximately $46.1 billion. One of the largest projects is the NextStar Energy battery-cell plant in Windsor, Ontario, backed by Stellantis and LG Energy Solution as part of an investment exceeding $5 billion.

A new U.S. tariff would threaten more than batteries installed in electric cars. Large-scale battery systems are also becoming essential to electricity grids, data centres and renewable-energy projects because they can store power and release it when demand rises. The United States installed approximately 58 gigawatt-hours of battery storage in 2025, with another major increase expected in 2026. Canadian plants were developed with access to that expanding North American market in mind.

For workers in Windsor and communities hosting suppliers, the danger would be less dramatic than an immediate plant closure but still significant. Tariffs can delay purchasing agreements, reduce production volumes or persuade companies to place their next investment inside the United States. Canadian manufacturers could absorb part of the duty through lower margins, while American customers could seek domestic or overseas alternatives. Either outcome would weaken the economics behind projects that were built around a relatively open continental market.

Cast-Iron Products and Fittings Face Pressure Beyond the Steel Mill

Cast-iron products and fittings rarely receive the attention given to automobiles or steel mills, yet they are essential to water systems, commercial buildings, industrial plants and energy infrastructure. Fittings such as couplings, flanges, elbows and connectors allow pipes to change direction, join equipment and withstand pressure. A construction site may need only a small number of these parts, but work can stop completely when the correct fitting is unavailable.

The threatened category would arrive as Canadian metal producers and fabricators are already dealing with extensive U.S. restrictions. More than 90 per cent of Canada’s steel and aluminum exports have historically been sold to the United States, reflecting supply chains developed over decades. Current American metal duties have placed pressure not only on large producers but also on smaller businesses that cut, shape, coat and assemble metal products for individual customers.

The experience of adjacent manufacturers offers a warning. In 2025, a Nova Scotia steel fabricator told Reuters that a 50 per cent U.S. tariff had made selling into the American market effectively impossible. Cast-iron fittings are a distinct product category, but manufacturers could face the same basic calculation: raise prices and risk losing customers, or absorb the tariff and sacrifice already-thin margins. Importers may also hold less inventory when trade rules are uncertain, increasing the chance that builders and repair crews encounter longer waits for specialized components.

Plastic Piping Tariffs Could Reach Municipal Construction Projects

Plastic pipes and fittings carry drinking water, sewage, natural gas and irrigation supplies while also serving mining, telecommunications and industrial facilities. Canada’s plastic pipe, fitting and profile-manufacturing industry generated approximately $3 billion in revenue in 2023, although that represented a decline of roughly 10.7 per cent from the previous year. The broader Canadian plastic-products sector exported about $13 billion worth of goods in 2024, demonstrating how deeply these materials are embedded in international trade.

Unlike luxury consumer products, piping is usually purchased because a building, subdivision or public system cannot function without it. A municipality replacing an aging water main may require thousands of metres of pipe built to specific pressure and safety standards. Contractors cannot always switch products quickly because engineering approvals, building codes and project designs may specify particular materials, dimensions or manufacturers.

A U.S. tariff could therefore create several possible consequences. Canadian producers might reduce prices to preserve contracts, American distributors might pass the additional cost to contractors, or purchasers might delay projects while looking for alternatives. None of those outcomes would be limited to the factory floor. Higher material costs can influence bids for housing developments, wastewater systems and road reconstruction.

The timing is especially sensitive because Canadian manufacturers already face volatile resin costs, transportation expenses and uneven construction demand. Even the possibility of future tariffs can make long-term supply agreements harder to negotiate. For a sector built on high volumes and carefully controlled costs, relatively modest changes at the border can determine whether an order remains profitable.

Industrial Chemicals Would Spread the Impact Across the Economy

Industrial chemicals are sometimes described as an industry behind other industries. They become ingredients in automotive components, fertilizers, paints, adhesives, insulation, packaging, electronics, pharmaceuticals and construction materials. According to the Chemistry Industry Association of Canada, the country’s industrial-chemical sector recorded approximately $33.7 billion in shipments and $26.8 billion in exports during 2024. The sector directly employed about 21,200 people and supported a much larger network of transportation, engineering, maintenance and service jobs.

That reach makes an industrial-chemical tariff particularly difficult to contain. A duty imposed on a chemical crossing the border may eventually appear in the price of several downstream products. A resin used in vehicle parts, for example, can affect a chemical plant, a moulding company, an auto-parts supplier and an assembly operation. The cost can move through the chain even when the final product itself is not directly covered by the original tariff.

Canada and the United States have built highly integrated chemical supply chains around pipelines, rail systems and manufacturing clusters in Alberta, Ontario and Quebec. Materials may cross the border for processing before returning as a different chemical or finished product. Replacing those relationships is not as simple as ordering from another website; industrial customers must test materials, verify performance and obtain regulatory or safety approvals.

Tariffs could encourage some American companies to purchase domestically, but limited capacity or specialized requirements may leave them paying more instead. Canadian producers would face the competing risks of lost orders and declining margins. The result could be lower investment in facilities that require enormous upfront spending and must operate at high capacity to remain competitive.

Power-Grid Equipment Tariffs Could Deepen an Existing Shortage

Transformers, switchgear, circuit breakers and other grid components are becoming some of the most sought-after industrial products in North America. Electricity demand is rising as data centres expand, factories electrify and utilities replace aging infrastructure. Canadian electrical-equipment manufacturers exported approximately $4 billion worth of products in 2024, although that total includes more than power-grid machinery alone.

A tariff on grid equipment could be unusually counterproductive because American utilities are already struggling with long lead times. U.S. demand for certain large generator transformers has risen sharply since 2019, while prices for major transformer categories have increased by about 80 per cent over five years. Some customized equipment can take as long as four years to obtain. The United States also imports more than 80 per cent of the large power transformers used domestically, leaving projects vulnerable to trade restrictions and supply disruptions.

For a utility planner, a delayed transformer is not an interchangeable inconvenience. Equipment must be engineered for specific voltages, loads and safety requirements. Delays can postpone new housing connections, renewable-energy projects, factory expansions or the restoration of damaged infrastructure.

Canada and the United States also operate interconnected electricity systems, with 34 active international transmission lines. That physical integration makes the idea of treating Canadian grid equipment as a security threat especially complicated. Washington may hope tariffs stimulate domestic manufacturing over time, but the immediate effect could be higher project costs and longer waits. Canadian producers, meanwhile, could lose access to their largest nearby market precisely when North American electricity investment is accelerating.

Telecom Equipment Could Become the Next Strategic Trade Battleground

Telecommunications equipment occupies a politically sensitive space because it supports mobile networks, internet traffic, emergency services, businesses and government communications. The potential tariff category would involve physical products such as communications hardware, radio equipment, network components and related devices rather than the software and digital services that make up much of Canada’s technology economy.

Canadian information and communications technology companies exported approximately $7.6 billion in physical ICT goods to the United States in 2024. The figures also reveal an area of vulnerability: exports from the “other communications equipment” manufacturing category were about 6.1 per cent lower than in 2019. That suggests some manufacturers would enter a new tariff fight without the rapid growth or financial cushion enjoyed by larger parts of the technology sector.

Many Canadian telecom-hardware businesses compete through specialized engineering rather than massive production volumes. A mid-sized company may design and test equipment in Canada while relying on components, assembly facilities and customers spread across the continent. Moving production to satisfy U.S. policy demands could require new facilities, supplier certifications and substantial capital.

American officials could argue that domestic communications manufacturing is important to security and supply-chain resilience. Canadian officials, however, would have a strong case that trusted Canadian suppliers strengthen rather than weaken continental security. If tariffs move ahead, Ottawa would likely seek exemptions while helping affected companies find alternative markets. Diversification may reduce long-term dependence, but it cannot quickly replace the scale, proximity and shared technical standards of the United States.

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