April saw the largest monthly decline in manufacturing sales since 2023, with a 2.8% decrease.

April marked the initial complete month of tariffs implemented by the United States in numerous sectors.

A substantial machine is operated by two individuals who are attired in blue jumpsuits with reflective safety stripes.

At the Martinrea auto parts manufacturing plant in Woodbridge, Ont., employees operate the production line on February 3, 2025.

According to Statistics Canada, manufacturing sales experienced a 2.8% decline in April, the most significant monthly decline since October 2023, as a result of the tariff dispute with the United States.

According to Statistics Canada, manufacturing sales experienced a 2.8% decline in April, the most significant monthly decline since October 2023, as a result of the tariff dispute with the United States.

The agency has reported that manufacturing sales have reached their lowest point since January 2022, following a second consecutive monthly decline.

The decline was primarily driven by a decrease in the sales of primary metals (down 4.4%), motor vehicles (down 8.3%), and petroleum and coal products (down 10.9%).

“The monthly GDP may be revised lower relative to its initial estimate, as both manufacturing and wholesale sales were weaker than anticipated in April,” wrote Andrew Grantham, senior economist at CIBC Capital Markets.

Although the trade war commenced in March, April was the first complete month of tariffs imposed by the United States in numerous sectors, with a particular emphasis on Canada’s steel, aluminum, and automotive industries.

In April, approximately 50% of manufacturers and 43% of wholesalers reported that they were experiencing tariffs in some capacity.

According to a separate press release from Statistics Canada, wholesale sales experienced a 2.3% decline in April, with the motor vehicles parts and accessories subsector being the most affected.