Changes to U.S. tariffs are straining Canadian mold makers and prompting calls for federal support.
In April, the Trump administration expanded Section 232 tariffs to apply a flat 50 per cent fee on the full value of imports containing steel, aluminum, or copper.
At Aalbers Tool & Mold in Oldcastle, president Aaron Aalbers says the shift has disrupted existing contracts, with many U.S. customers delaying shipments, leaving companies carrying millions in unpaid costs.
"They're willing to have the tools be delivered in three months as opposed to this month in the hopes that something gets worked out or changed, but in the meantime, we're not getting paid for the product until that occurs," Aalbers said.
"So I'm left holding the interest payments and the full cost of the tool until we actually do ship it to the customer."
He said the current payment structure is tying up millions of dollars for shops.
"So you're talking millions of dollars for shops that their total sales in a year might be 45 million, and if you're cutting out 10, 15 million of that they're holding on to, that's not a sustainable situation," said Aalbers.
Industry leaders say some firms may only be able to survive a few months without support.
Nicole Vlanich, executive director of the Canadian Association of Mold Makers, said relocation is becoming a growing concern if a new trade agreement is not reached.
"I think even without that promise, that's a consideration," she said.
"That has been something that they're talking about, that if tariffs continue, if there's no agreement made, that they're going to have to start making those tough decisions about moving across the border."
Local Conservative MPs Chris Lewis, Kathy Borrelli, Harb Gill and Dave Epp held a press conference over the weekend urging Prime Minister Mark Carney to resume U.S. trade talks and provide short-term relief, warning uncertainty could push manufacturers out of Canada.
-With files from CTV Windsor's Robert Lothian