Industry and Technology Committee on April 20th, 2026

[Jonathon Azzopardi]

Surprisingly enough, we're getting a lot of support in the United States. As I said before, they're drinking the Kool-Aid, even knowing that it's poison Kool-Aid. They don't like what's going on. They're trying to find alternatives. We are finding alternatives, but I'd rather not talk about them in this forum. In a one-on-one meeting, we can talk about those.

There are HS code opportunities. We know that the dies that are crossing the border today are exempt. Moulds should be exempt as well. These are low-hanging fruit opportunities. We can work with the federal government to get in front of the right people at USTR to be able to make these decisions and help us with these immediate actions.

We need the federal government to listen. That's why we're here today. The next step is that we need to sit down on a one-on-one basis with those ministers who can help us and who can actually go to work for us in Washington, although I did tell you that we are hiring consultants. We are seriously looking at consultants. We're being asked to do that so that we can get representatives in Washington to start to fight on our behalf.

[Parm Bains, Liberal, Richmond East—Steveston, BC]

Thank you.

[The Chair, Liberal, Ben Carr]

Thank you, Mr. Bains.

Colleagues, that brings us to the end of the first hour.

I very much want to thank the three witnesses for being here today.

We know that it's a very challenging time for you personally, for all those you represent and, by extension, for their families and surrounding communities. I appreciate the fact that you've taken some time to be with us today to deepen our understanding of the challenges before us. Feel free to keep in touch, always, if you have reflections or other correspondence you'd like the committee to evaluate as time goes by. We'd certainly be happy to have that.

Colleagues, we'll suspend temporarily. Then we'll come back for the second hour.

[The Chair, Liberal, Ben Carr]

All right, colleagues, welcome back. We are going to continue with the second hour of questions here on the conversation surrounding section 232 tariffs and particularly the impact on mould-makers and direct and indirect manufacturing in Canada.

We have a few new witnesses with us here today. Cyrus Jebely, the president of Cap-Thin Molds, is here with us today in the room. From Cavalier Tool & Manufacturing Limited, we have both Chris Vander Park, the international business manager, as well as Diane Ricci Woodiwiss.

Mr. Vander Park, if I'm correct, I believe you're going to be speaking on behalf of the organization.

Joining us online and just confirmed on very short notice about an hour ago—thank you very much—is Madame Catherine Blanchet, the vice-president for business development from Prexor Inc.

Madame Blanchet, perhaps we will start with you. You have up to five minutes for your introductory remarks.

[Catherine Blanchet, Vice-President, Business Development, PREXOR]

I am speaking to you in my capacity as an engineer, co-owner of PREXOR Optimoule, and member of the Board of Directors of the Canadian Association of Moldmakers.

PREXOR is a Quebec-based company with over 40 years of expertise in the design and manufacture of high-precision moulds for strategic sectors such as the medical and defence industries.

The manufacturing industry, including the mould-making sector, has been threatened with extinction for nearly 25 years due to direct and unfair competition from low-cost countries. These ongoing threats—and sudden ones in the case of the United States—continue to erode the sector.

PREXOR, which employs only 30 people, is now the largest mould maker in Quebec, a position it attained following the successive closures of many of my peers. Our domestic capabilities are eroding, and our independence will be affected. Just as food self-sufficiency was established after the two world wars, manufacturing self-sufficiency is now a vital necessity.

Sixty per cent of my company’s production is destined for the United States. Our customer base allows us to stay in business. With these new tariffs, our customers are increasingly uncertain about doing business with Canada, and they may turn to other countries that offer lower costs and fewer tariffs.

PREXOR cannot afford to hire lobbyists or relocate its workforce. We will have to close our doors in the medium term if nothing changes. Our industry relies on expertise that requires years of specialized training and apprenticeship on complex, high-value equipment. Once these skills and investments are lost, these production capabilities cannot be restored overnight.

To guarantee a sovereign supply chain and ensure its defence, Canada must be able to rely on an independent manufacturing industry, whether it involves the production of bulletproof helmets, tank tracks, or radar systems adapted to the cold of Canada’s Far North.

The manufacturing industry demonstrated its agility during the pandemic by urgently producing protective equipment. It is the foundation of every product made in Canada. This industry needs immediate government support to survive, to retain its workforce, and to ensure that Canada does not depend on third countries for its security.

[The Chair, Liberal, Ben Carr]

Thank you very much.

Mr. Vander Park, I'm going to turn the floor over to you, sir, for up to five minutes.

[Chris Vander Park, International Business Manager, Cavalier Tool & Manufacturing Ltd.]

Thank you, Mr. Chair and members of the committee, for the opportunity to speak with you today.

My name is Chris Vander Park. I'm the international business manager at Cavalier Tool & Manufacturing. I'm joined by Diane Ricci Woodiwiss, our chief financial officer.

Cavalier Tool is a family-owned plastic injection mould manufacturer based in Windsor, Ontario. We have been in business for 50 years, designing and manufacturing precision plastic injection moulds—upstream tooling that enables production across automotive, commercial goods, agricultural goods, recreational vehicles, construction, aerospace and advanced industrial markets. Simply put, we make things that make things.

We operate three facilities in Windsor, Ontario, with our third plant completing a major expansion in January 2025. That investment was based on the expectation of stability, long-term growth and continued participation in integrated manufacturing supply chains from January 2025 and beyond. We are proud to be part of Canada's advanced manufacturing base and highly integrated North American supply chain, built on cost, quality, reliability and predictable execution.

Manufacturing depends on rules that are clear, durable and consistent over the life of a project. Over the past year, that consistency has eroded. Since February 2025, the rules governing the shipment of Canadian injection moulds into the United States have changed seven separate times. At Cavalier Tool, we have been operating in an environment of continually shifting requirements, despite full compliance with CUSMA. These changes were not confined to a single action or policy. They included tariffs being imposed, enforcement pauses, exceptions being restored, scope expansions, the termination of tariffs imposed under the IEEPA authority, the reclassification of injection moulds as derivative products under section 232 and, most recently, a fundamental change in how the tariff value is calculated—again under section 232.

Each change has required manufacturers like us to reprice work, revisit contracts, reassess delivery schedules and manage commercial risk. Often, these projects were already well under way.

Injection moulds are not commodity products. They are custom-engineered capital assets designed and built over many months and thousands of skilled hours. Pricing, scheduling and capacity planning are committed long before moulds ever ship. When trade rules change midstream, commercial risk shifts primarily to the manufacturer, customers delay decisions or reopen negotiations, projects are paused or slowed, and planning becomes defensive rather than strategic.

As a direct result of repeated rule changes, at Cavalier Tool, we have been forced to alter how we conduct business. Every quotation we issue today includes the following language: “Tariffs, duties, or government-imposed surcharges are not included in this quotation. Any such charges applicable at the time of shipment shall be the responsibility of the customer.” That language did not exist in our business before. It is not a legal precaution. It is not a negotiating strategy. It reflects the reality that we can no longer confidently state what the rules will be when we ship a tool.

When our customers see conditional pricing, they hesitate. It's not because they doubt Canadian quality or capability, but because they can no longer clearly quantify their financial exposure or delivery risk. When that hesitation becomes common, orders slow, programs are deferred, investment decisions are delayed and work migrates elsewhere. Once that work leaves and once industrial capacity erodes, it is exceptionally difficult to rebuild, even though we are working within CUSMA.

Ours is a resilient industry. We have adapted for decades, but what has fundamentally changed is the uncertainty. Imagine negotiating the purchase of a new car. You agree on a price, you arrange financing and you return to the dealership to pick it up only to find out they have raised their price by 15%. You would object, you would look elsewhere and you would not return. That is how repeated rule changes feel to our customers.

Thank you.

[The Chair, Liberal, Ben Carr]

Thank you very much, Mr. Vander Park.

Mr. Jebely, the floor is yours for up to five minutes.

[Cyrus Jebely, President, Cap-Thin Molds]

Thank you, Mr. Chair.

My name is Cyrus Jebely. I'm the founder and president of Cap-Thin Molds, a manufacturing company in Mississauga, Ontario.

Good afternoon, members of the committee. I would like to thank you for the opportunity to speak with you with regard to the current Canada-U.S. business tariffs, and specifically section 232.

Cap-Thin Molds is a major supplier of high-precision injection moulds, serving the food and beverage, medical and personal care industries. Our company has been significantly impacted by newly implemented U.S. tariffs affecting both our products and our services that we provide to our customers in the United States.

To illustrate the real economic impact of this situation, I would like to share a concrete example of a recent project. A 72-cavity injection mould, valued at $900,000 U.S. and used to produce plastic caps for beverage packaging, was shipped to a U.S. customer back in November 2025. As a result of tariffs imposed on August 15, 2025, an additional cost of $35,000 U.S. was added to the cost of the project. Notably, the contract for this project had been signed prior to the announcement of these tariffs, making this cost entirely unexpected and not accounted for in the original project pricing.

An identical 72-cavity mould was shipped to the same customer on April 14. Due to the implementation of new section 232 tariffs, effective April 6, this project had a significantly higher tariff of $135,000 U.S. This example illustrates a nearly fourfold increase in the tariff burden on the same product within a span of less than six months, highlighting the significant and unpredictable financial impact of recent trade policy changes on cross-border manufacturing projects.

StackTeck is another Canadian company, in Brampton, Ontario, and a member of the Canadian Association of Moldmakers. It is also a major supplier of injection moulds for the food and beverage industry, medical and personal care products and industrial containers. StackTeck ships approximately $42 million U.S. in moulds and automation to customers in the U.S. on an annual basis. StackTeck employs 281 employees in the greater Toronto area and purchases over $30 million U.S. of goods and services annually from local businesses in the GTA.

We have all seen a negative impact on our business volumes as a result of the section 232 steel tariffs imposed last year. A typical project can range from $500,000 U.S. to $2.5 million U.S. A 15% tariff is far beyond the contingency funds our customers can typically absorb. With the new tariff of 15% set to increase to 25% in 2028, we will be extremely challenged to remain competitive over our European and Asian competitors. If these higher-level tariffs are not reduced, we believe this will significantly reduce our order volume and ultimately result in our having to move a significant portion of our operations to the United States.

Our supply chains—

[The Chair, Liberal, Ben Carr]

Mr. Jebely, I'm going to take the opportunity as you sip that water to let you know we are over the time. I'll give you 20 seconds to conclude your opening remarks.

[Cyrus Jebely]

Okay. I'll make it quick. Let me get to the very last point.

I would like to emphasize that during the COVID-19 pandemic, our industry was designated essential and remained fully operational throughout the shutdowns to support the continuity of critical supply chains, including food packaging and medical products.

Thank you.

[The Chair, Liberal, Ben Carr]

Thank you very much.

We will now move on to questions.

Mr. Gourde for six minutes.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Thank you, Mr. Chair. I will be sharing my speaking time with Ms. Borrelli in 2 minutes and 55 seconds.

Ms. Catherine Blanchet, I get the impression that we are currently in a race against time to save industries like yours. You mentioned immediate government support. Can you elaborate on what you need to save your industry?

[Catherine Blanchet]

What we need is for this uncertainty to end. We must negotiate with the United States so that our manufacturing industry can survive. It is surprising to see that manufacturing accounts for only 15% of the economy, but it is still the foundation of the economy. Negotiations with the United States must resume.

If I told you that I want subsidies, financial aid—yes, I’d be happy to receive money to survive—but what I want is for the uncertainty to end. We want to do business. That’s what we want to do.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Yesterday's address to the nation by the Prime Minister seemed concerning. He said that the United States has become a problem rather than a source of business opportunities.

Are you worried about what will happen next?

[Catherine Blanchet]

I’ve been working on diversifying my markets for years. However, diversifying into other markets isn’t something that happens overnight. Before we can say we’re going to change our approach and sell our products in Europe, it’s going to take several years. Moulds are very heavy and bulky. It’s difficult to break into a new market, and if we have to ship our products to Europe, it will be challenging. We can’t change our business model overnight, because it takes years. Even though manufacturers are known for being agile, it takes years to break into new markets and enter new countries. We won’t be able to achieve that so quickly.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Do you feel the government has abandoned you?

[Catherine Blanchet]

Look, if I were to answer that question, it would be playing politics. I’m here to describe what’s happening and to tell my government that we need help. As for my thoughts on what it is or isn’t doing, I’d rather not comment on that sort of thing. I'm sorry.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Thank you, Ms. Blanchet.

That's all from me.

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

Thank you, Chair.

Mr. Vander Park, how critical is a long-term trade agreement to the survival of the mould-making industry?

[Chris Vander Park]

We won't be around without it.

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

Mr. Jebely, I have the same question for you. How critical is a long-term trade agreement to the survival of the industry?

[Cyrus Jebely]

It's the same answer. The industry will not survive without it. There's no question.

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

Mr. Vander Park, we've heard that tariffs can reach up to 50% on the full product value. How does that affect your ability to quote competitively, and are you seeing customers willing to pay the upcharge?

[Chris Vander Park]

That's a loaded question. Right now, we have not changed our quotes. We have not raised our prices. Our quotes are still the same numbers. We submit a quote based on our numbers.

The problem is when we go to ship. On August 18, 2025, when the first steel tariff went into place, our price went up 50% on steel, and then on April 6, when the latest tariff was implemented.... When we move to buy U.S. steel, we're tariffed on top of the U.S. steel that we paid a premium for. We're double-dipped, if not triple-dipped, and now we're going back to our customers and saying, “We need 15% more.” It's not realistic. It's not a long-term plan. It's very short-term.

It's a conversation that Diane, my ownership and I have every single day with our customers. We talk about the dollars and cents, how long they can survive having to pay that or how long we will have that customer for.