Source: NYT > Business (paywall)
Trump's broad tariffs on Canadian imports are forcing even niche manufacturers—like sprinkler makers reliant on Canadian components—to immediately reassess sourcing. Mid-market firms lack the scale and lobbying power of Fortune 500 companies to absorb or sidestep tariff costs, so they face real operational choices: absorb the tariff, find new suppliers, or relocate production. The supply chain fragmentation this creates benefits Mexico and certain Asian manufacturers positioned to backfill Canadian sourcing gaps, altering continental manufacturing for years.