Canada's manufacturing and factory sales have taken a significant blow

The activity of the Canadian factory remained low in April, with a preliminary report showing a sharp drop in sales led by a drop in oil, coal and engine vehicles. At the same time, a group of American senators visiting Canada to “give us another chance” on trade and tourism, seeking to consolidate the tied links by recent tariff disputes.

According to Canada Early Estimate StatisticsManufacturing sales fell 2.0% in April from March. The agency based this figure on responses covering approximately 59% of its usual monthly survey. More complete results are due on June 13.

In March, manufacturing sales had already decreased by 1.4%, the largest drop in seven months after a drop of 0.2% in February. Analysts said that weakness reflected the first cycle of American imports on Canadian steel and aluminum, which entered into force at the end of the previous quarter. Sale of lower metals after four months of gains were an important factor.

This same report has shown that stocks slipped 0.7% in March after two months of accumulation. But the new orders increased by 1.0% compared to February, suggesting a certain collection of demand.

Additional S&P data has painted a darker image. The Canada Manufacturing Achaing Index index fell for the third consecutive month, going to 45.3 in April from 46.3 in March. Any reading less than 50 contraction signals, and the reading of April was the lowest since May 2020. Production and new orders continued to weaken.

American senators have urged Canada to update tourism and trade relations

In this context, five American senators have made a rare journey in Ottawa last weekend. They met Prime Minister Mark Carney on Friday, who said he wanted a new economic and security partnership with the United States despite what he called in the era of “deep integration”.

The North Dakota Kevin Cramer Republican Senator told Mercedes Stephenson on the western block that stronger ties were vital. “We have to do these things together,” he said. “We will be better if we are friends than if we tolerate ourselves. … I am right there to thank you, then to encourage Canadians to take another look and give us another chance.”

Relations between the two countries have refrinted since President Donald Trump has imposed general prices on Canadian imports and suggested that Canada could become the 51st American state. Tourism has also taken a hit. Statistics Canada reported four consecutive months of steep drops from one year to the other in American visitors to Canada, and some US states have responded to advertising campaigns to send Canadians.

Virginia Democratic Senator Tim Kaine said reservations for Canadian tourist in his state were “down considerably”. He and his senior colleagues wanted to alleviate concerns in Canada. “We were aware, because we all have great friends in Canada, that there was a lot of anxiety, well, that Americans think of us?” Said Kaine. “We have five of us to say:” Look, we love Canada “.”