Ontario Aluminum Packaging Manufacturer Facing Trade Challenges

The aluminum packaging industry in Ontario is currently facing significant challenges due to tariffs affecting its operations. One prominent player in this space is Wohler Canada Inc., located in Mississauga, Ontario, which specializes in producing a variety of aluminum products, including pie tins and takeout containers.

Impact of Tariffs

Wohler Canada Inc. reports that approximately 20% of its finished goods are exported to the United States. However, according to the plant manager, Sam Thang, this segment of their business has been severely impacted, with concerns that its share could diminish significantly. The indirect consequences of these tariffs are also troubling, as local Canadian sellers who use Wohler’s products to package pies and convenience meals for the U.S. market are likely to raise their prices, thereby limiting sales.

Raw Material Issues

One of the critical issues facing Wohler is its reliance on raw materials sourced from China. The Canadian government instituted a 25% surtax on aluminum imports from China last October, citing reasons such as heavy subsidization. Though Wohler received a temporary reprieve from this tax until the year’s end, the stress on business operations is palpable.

Wider Trade Context

In addition to the tariffs imposed specifically on aluminum, the broader trade dynamics between Canada and the U.S. have created further unease. Following tariffs imposed by the U.S. on Canadian aluminum goods, Canada retaliated with its own set of 25% tariffs affecting U.S. products worth nearly $30 billion. Such actions contribute to an increasingly complex and challenging trade environment.

As 2025 proceeds, there’s growing concern among manufacturers like Wohler regarding their future operational capabilities and market stability. The combined effects of rising costs, tariff pressures, and a shifting availability of raw materials leave many in the industry feeling squeezed and uncertain.

aluminum, tariffs, trade