New U.S. tariffs on electronic equipment could make the electronics sector the hardest-hit industry in Canada, according to industry experts.

This development threatens a critical supply chain because the Canadian electrical and automation industry relies heavily on the American market for its revenue. The sector's vulnerability stems from the fact that approximately 90 percent [1] of its exports are sent to the United States.

President Donald Trump issued executive orders imposing 50 percent [3] tariffs on more than 500 [3] product categories, which includes electronic equipment. While some reports describe the measures as threats, others indicate the orders have already been issued.

Carol McGlogan, president of Electro-Federation Canada, said the tariffs would only hurt the industry on both sides of the border. The potential for increased costs and reduced trade volume puts Canadian manufacturers at a significant disadvantage in a highly integrated regional market.

Industry analysts said that Canada's electronic industry could be among the hardest hit by these measures [2]. The scale of the tariffs, affecting hundreds of categories, suggests a broad shift in trade policy that could disrupt automation and electrical production across the border.

Because the electronics sector is so deeply entwined with U.S. manufacturing, these tariffs may lead to higher costs for American consumers and companies that rely on Canadian components. The impact is expected to be felt immediately as companies adjust their pricing and shipping strategies to account for the new duties.

“The tariffs would only hurt the industry on both sides of the border.”

The high concentration of Canadian electronics exports to the U.S. creates a strategic dependency that leaves the sector exposed to American political shifts. A 50 percent tariff effectively disrupts the cost-benefit analysis of cross-border production, potentially forcing Canadian firms to seek new markets or face significant contraction while increasing costs for U.S. buyers.