Statistics Canada says manufacturing sales edged up June and a smaller share of firms reported an impact from U.S. tariffs.
The agency said Friday that manufacturing sales in June rose 0.3% to $68.5 billion, breaking a streak of four consecutive monthly declines.
Petroleum and coal sales increased 11.8% to $6.8 billion in June, while the food product subsector gained 2.5% to reach a record $13.2 billion.
Meanwhile, the transportation equipment subsector fell 5% to $10.5 billion in June, the lowest level since November 2022, as sales of motor vehicles fell 9.4% and motor vehicle parts lost 2.8%.
Firms continue to report headwinds from Canada’s tariff dispute with the United States, though there are signs some manufacturers are avoiding the trade disruption.
Roughly 40% of manufacturing firms surveyed by Statistics Canada reported being affected by U.S. tariffs in June, down from 50% in May and 60% in April.
Price increases, higher expenses for raw materials, shipping or labour and changes in demand were the most commonly cited impacts of the tariffs.
The primary metal, machinery, fabricated metal and transportation subsectors were most likely to report tariff hits in June, with Ontario standing out as the province with the biggest sales decline attributed to the import duties.
Early in June, U.S. President Donald Trump doubled global tariffs on steel and aluminum entering the United States to 50%.
In constant dollars, Canada’s total manufacturing sales were unchanged in June.
In a separate report, Statistics Canada said wholesale sales, excluding petroleum, petroleum products and other hydrocarbons and excluding oilseed and grain, rose 0.7% to $84.7 billion in June.
In volume terms, wholesale sales, excluding those items, rose 0.6%.