Canadian Mold Makers Urge Ottawa for Emergency Aid as U.S. Tariffs Threaten Jobs
Canadian mold makers are calling on Ottawa to provide urgent financial support after new U.S. tariff rules placed fresh pressure on the country’s manufacturing sector. The latest changes have raised serious concerns among tool and mold companies, especially in Ontario’s manufacturing-heavy communities.
The issue began in early April when the Trump administration changed how tariffs are applied to certain imports containing steel, aluminum, and copper. Instead of charging tariffs only on the metal portion of a product, the new rule applies fees to the full customs value of items made entirely or mostly from those metals.
U.S. Tariff Changes Create Major Pressure for Mold Makers
The tariff change falls under Section 232 of the Trade Expansion Act and places what has been described as a flat 50 per cent fee on the full value of affected imported products.
For Canadian mold makers, this has created immediate problems. Many companies had already signed contracts with American customers months before the rule changed. Those contracts did not include the sudden extra tariff costs, leaving businesses stuck with unexpected expenses.
At Aalbers Tool & Mold in Oldcastle, company president Aaron Aalbers said the new tariff system quickly disrupted agreements with U.S. clients. Some customers have agreed to share part of the added cost, but many others have delayed shipments while waiting for more certainty.
Delayed Shipments Hurt Cash Flow
Aalbers explained that delayed shipments mean companies are not getting paid on time. In the mold-making industry, businesses often do not receive final payment until the tool reaches a U.S. plant and is put into production.
That creates a dangerous cash-flow problem. Companies may be forced to carry the full cost of production, interest payments, and unfinished contracts for months.
For shops with annual sales of around $45 million, holding back $10 million to $15 million worth of product can quickly become unsustainable. Smaller manufacturers face even greater risk because they have fewer financial reserves to absorb long payment delays.
Tory MPs Call on Ottawa to Act Fast
As concerns grow, Conservative MPs from the Windsor and Chatham-Kent region are urging Prime Minister Mark Carney to resume trade discussions with the United States and deliver a clear support plan for the industry.
MPs Chris Lewis, Kathy Borrelli, Harb Gill, and Dave Epp held a press conference at Aalbers Tool & Mold to highlight the damage being caused by the tariff changes.
The MPs said the federal government must move quickly before Canadian manufacturers are forced to relocate, reduce operations, or lose customers permanently.
Lewis warned that without a plan, some businesses may move production to the United States, Mexico, or rely more heavily on Chinese sourcing. He said once skilled jobs and manufacturing capacity leave Canada, they may not come back.
Industry Wants Financial Relief and Trade Certainty
Mold makers and local political leaders are asking Ottawa for two main responses: short-term financial aid and a long-term trade agreement.
In the short term, companies need support to survive the next several months while tariff uncertainty continues. In the long term, industry leaders say only a renewed trade deal can give businesses the certainty they need to invest, hire, and compete.
MP Dave Epp said the current tariff rules are time-limited, but the industry still does not know what will happen after the 90-day period ends. He said the federal government must address the crisis immediately while also working toward a broader trade solution.
Why the Mold-Making Industry Matters
The Canadian mold-making industry plays a major role in manufacturing. Mold makers support the production of automotive parts, medical components, hygiene products, consumer goods, and other essential items.
Because of this, industry leaders argue that the damage would not be limited to mold shops alone. If mold makers weaken or close, other parts of Canada’s manufacturing supply chain could also suffer.
This is especially important in southwestern Ontario, where tool and mold companies support thousands of workers and many local businesses.
Some Companies May Consider Moving to the U.S.
The Trump administration has used tariffs as a way to pressure businesses into moving operations to the United States. Since companies operating inside the U.S. would not face the same import fees, some Canadian manufacturers may eventually consider relocating if the dispute continues.
Nicole Vlanich, executive director of the Canadian Association of Mold Makers, said some companies are already discussing difficult options. If tariffs remain in place and no agreement is reached, she said manufacturers may be forced to consider moving across the border.
Vlanich warned that Canada risks losing an important part of its manufacturing base if no solution is found.
Smaller Shops Face the Greatest Risk
According to Vlanich, larger companies may be able to survive for three to six months under the current pressure. However, smaller shops may have only a few months, or even less, before the financial strain becomes too severe.
Many businesses are currently covering the added costs themselves. That means owners are absorbing expenses while waiting for customers, shipments, and governments to provide clarity.
Industry representatives say this is exactly why federal support is needed now, before companies are pushed toward layoffs, closures, or relocation.
Calls for Prime Minister to Visit Mold Facilities
Mold makers and local politicians also want Prime Minister Carney to tour Canadian tool and mold facilities. They believe seeing the operations firsthand would help the federal government understand how important the sector is to local communities, workers, and the broader economy.
During a recent visit to Ottawa, Vlanich said there were some early discussions about the industry’s need for aid. She is now hoping to secure meetings with MPs and ministers in the coming weeks.
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