Advocacy / CADSI News
March 4, 2025

CADSI Reacts to U.S. Tariffs

  

OTTAWA, March 4, 2025Christyn Cianfarani, President & CEO of the Canadian Association of Defence and Security Industries (CADSI), today issued the following statement: 

We are profoundly disappointed by the tariffs imposed today by the Trump Administration on Canadian imports, which will impact defence trade. Canadian-made parts, components, and raw materials make their way into everything from the life-support systems used on injured American soldiers to the jets patrolling U.S. airspace. 

These tariffs fly in the face of over seven decades of tightly integrated defence manufacturing between our two nations, stretching back to the Second World War. Ours is a security partnership unlike any other and, given the deteriorating international security environment, one that must endure.  

The U.S. has a longstanding balance of trade advantage for defence goods and services. Many defence goods cross the Canada-U.S. border multiple times during production, compounding the economic harm of this decision.  

CADSI will continue working with Canadian government officials to seek clarity, provide feedback on potential responses, and track the impact of these tariffs and the Canadian countermeasures on our members. In the short term, the Government of Canada must do what it can to support companies as they continue to deliver for the Canadian Armed Forces through flexibility in contracted terms and conditions, while also helping businesses look to new markets abroad. That starts with the elimination of Export Development Canada’s self-imposed prohibition against supporting legitimate defence trade.” 

 

Key Facts
  • Canadian defence exports to the U.S. account for 32% of all annual sales within our industry, valued at over $4.5 billion.  

  • 28% of all Canadian defence industry supply chain expenditures are sourced from U.S. suppliers.

  • American-owned firms account for 40% of the Canadian defence industry by total annual sales. This is a result of U.S. companies acquiring highly successful Canadian companies and not a result of displacing existing production lines. 

  • The U.S. has a longstanding balance of trade advantage for defence goods and services. Most Canadian military platforms are purchased from American companies, including through sole sourcing.

For more information

Monique Scotti, Director of Communications 
[email protected] 
613-235-5337 ext 43

About CADSI

The Canadian Association of Defence and Security Industries (CADSI) is the national industry voice of more than 650 Canadian defence, security and cybersecurity companies that produce world-class goods, services and technologies made across Canada and sought the world over. The industries contribute to the employment of more than 78,000 Canadians and generate $12.6 billion in annual revenues, roughly half of which come from exports. To learn more, visit defenceandsecurity.ca and follow us on Twitter at @CadsiCanada .

Please direct all media inquiries to the media@defenceandsecurity.ca
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