EFC Supporting Industry Amongst Tariff Uncertainty

March 21, 2025

By Electro-Federation Canada

As a major representative of the electrical and automation industry, Electro Federation Canada remains committed to supporting its members and the industry overall in navigating the complexities of international trade policies.

With the ongoing threat and uncertainty from recent tariff announcements by both the United States and Canada, EFC has taken proactive steps to ensure that members are informed and that their voices are heard by the Canadian government. EFC’s dual approach—providing awareness and understanding of tariffs while amplifying industry advocacy—aims to mitigate the potential for negative impact on businesses, supply chains, and overall industry competitiveness.

In December, EFC collaborated with its counterparts in the United States and Mexico to issue a tri-lateral statement emphasizing the importance of free trade in electrical industry goods among Canada, Mexico, and the United States. This unified response from North American electrical industry associations underscored the need for a fair and balanced trade environment. By standing together, their voices aligned to confirm the importance of avoiding unnecessary trade barriers that could disrupt supply chains and economic stability within the electrical and automation sectors.

Late last year, EFC had the opportunity to meet with the International Trade Policy Branch of the Department of Finance to emphasize two key messages: 1. reinforcing the request for Tariff extensions on wire & cable and transformers (EFC submitted a formal recommendation); and 2. expressing the importance of maintaining an open and free trade zone between Canada, the United States and Mexico, as its manufacturing network is highly integrated in North America.

In response to the escalation and anticipation of tariff announcements by the U.S. government in late January, EFC prepared a tariff impact survey for its membership. With the tariff announcement on February 1, EFC launched the member survey to better understand and quantify the impact of the tariff plan.  The results revealed tariffs on Canadian goods would have a significant impact on costs, supply chains and overall business operations. Additionally, 65% of respondents anticipated that tariffs would have significant to very severe impacts to their business. Expected consequences to the tariffs include price increases and supplier and market re-alignment.

When asked if members were supportive of retaliatory tariffs, the answer was 60% in favour of retaliation. The insights gathered from this survey provided valuable data on the economic and operational challenges that members face due to these trade restrictions. The results demonstrated the real-world implications of tariffs, reinforcing the necessity of a strategic and informed response.

Upon the announcement of U.S. tariffs, Carol McGlogan, EFC’s President & CEO, issued a statement advocating for free trade. EFC’s position remains free trade is the best option and if necessary, Canada must work to secure an exemption for electrical products to ensure fair competition and market access. However, if an exemption is not granted, the industry supports a fair-trade approach to protect Canadian businesses and jobs, including the implementation of retaliatory tariffs on U.S. imports within the sector.

To formulate the above industry response, EFC convened discussions with its Board of Directors and Government Relations Committee. These deliberations resulted in a position emphasizing that, should Canada be unable to obtain an exemption, a fair-trade approach must be adopted to level the playing field for Canadian businesses.

Following these industry consultations, EFC submitted a formal position to Finance Canada outlining its concerns and recommendations. This submission included an initial list of electrical and automation HS codes affected by the U.S. tariffs. As part of the ongoing consultation process, EFC will continue to provide updated and revised lists to ensure comprehensive representation of impacted products.

To keep members informed and equipped to navigate these trade challenges, EFC has launched a dedicated Tariff Update Hub. This page provides a consolidated location for all of EFC’s tariff updates including information on government advocacy efforts, key announcements, and industry resources related to tariffs. By centralizing this information, EFC empowers its members with the tools they need to navigate these uncertain times.

EFC remains steadfast in its mission to support and advocate for the electrical and automation industry. Through industry collaboration, direct government engagement, and proactive communication, the association is committed to protecting Canadian businesses and jobs. EFC will continue to push for a free trade environment that fosters growth, stability, and competitiveness for its members and the industry at large. EFC encourages all industry stakeholders to stay engaged and leverage the resources available through its Tariff Update Hub.

Together, we can navigate these challenges and work towards a trade landscape that benefits businesses across North America.

For more information, visit the Electro Federation Canada website HERE.