The notion that Canadian companies can simply switch supply chains in response to American tariffs is a fantasy, experts say.
With 25 percent duties levied on some Canadian goods and the possibility of more tariffs to come, businesses north of the border are looking elsewhere to source their material and sell their products.
But companies caught up in tightly braided supply channels after decades of trade pacts and sector specialization may quickly bump into barriers around everything from transport and labour costs to resource availability, manufacturing capacity and market saturation.
“There are many, many industries that can’t just flip a switch,” said Ulrich Paschen, an instructor at Kwantlen Polytechnic University’s Melville School of Business….