Canada has begun imposing retaliatory tariffs of up to 50% on U.S. products starting September 8, escalating concerns over the North American trade war. Global companies are accelerating the restructuring of their North American supply chains to mitigate the impact of these tariffs.
According to a report by Bloomberg, Japan's Sapporo Beer has decided to shift some of its production from Canada to the U.S. to avoid the 50% tariff imposed on Canadian beer by the U.S.
Sapporo plans to relocate its non-alcoholic beer production, currently made in Canada for the U.S. market, to the U.S. by the first half of 2027. The company is considering acquiring or building a brewery in the western U.S. or outsourcing production to other firms.
This move is seen as a strategy to reorganize its North American operations and expand its presence in the U.S. market. Sapporo has been promoting its 'Sapporo Premium' brand, the top-selling Asian beer in the U.S.
Shofu Rieko, Sapporo's Chief Strategy Officer, told Bloomberg, "Tariffs are not something we can control. We will push for local production."
As companies exporting from Canada face direct tariff impacts, global automotive manufacturers with supply chains spanning the U.S., Canada, and Mexico are also reassessing their production strategies.
Under the U.S.-Mexico-Canada Agreement (USMCA), the U.S. and Canada had previously exempted most tariffs. However, with the U.S. reviewing the USMCA and the Trump administration indicating a potential 50% tariff on Canadian automobiles and parts starting next year, companies are on alert.
The Asahi Shimbun reported that Japanese automakers believe the U.S. tariffs will not be a temporary measure and are planning to strengthen local production. For instance, Honda has decided to shift some production of its CR-V, previously made in Canada for export to the U.S., back to the U.S. and is considering adding a new assembly plant in North America this July. Toyota is also accelerating its local production efforts in the U.S.
This trend of shifting production is spreading across Canadian manufacturing. A survey conducted by global consulting firm KPMG in July found that 40% of 275 Canadian manufacturers have already moved or plan to move some or all of their production to the U.S. due to trade uncertainties.
Moreover, the Trump administration has hinted at the possibility of additional measures. As Canada imposes retaliatory tariffs of 15% to 50% on over 700 U.S. products, including steel, motorcycles, cosmetics, and cheese, the trade conflict between the two countries may worsen.
Jameson Greer, a representative of the U.S. Trade Representative (USTR), indicated that further tariffs or a complete ban on imports of certain Canadian products could be considered, suggesting a potential escalation in trade tensions.
On the same day, President Trump specifically targeted Canadian aircraft manufacturer Bombardier, warning that sales in the U.S. would be prohibited. He posted on social media platform Truth Social, stating, "Do not sell Bombardier in the U.S. anymore. Their products are not good."
Approximately 5,100 Bombardier aircraft are currently in operation worldwide, with about half operating in the U.S., indicating a significant reliance on the U.S. market. A sales ban could have a substantial impact on the company. However, there are concerns that pressure on Bombardier could also create challenges for the U.S., as Bloomberg reports that Bombardier employs over 3,500 Americans and has more than 2,800 U.S. suppliers, with many parts produced locally.
* This article has been translated by AI.
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