| While President Donald Trump has put his tariff threats against Canada and Mexico on hold, manufacturers aren't taking any chances. The potential for new 25% tariffs just four weeks from now has prompted companies to speed up delivery of orders and scramble for ways to protect their supply chains. Take Iggy Domaglaski, who runs Toronto-based Wajax. He imports heavy industrial equipment like dump trucks and excavators, including from the US — and is not letting his guard down. "We will assume something is going to happen until we find out that it's not," he said. That caution speaks for manufacturing executives across the spectrum. Their concern is that Trump could revive his tariff warnings at a moment's notice. The trade truce hinges on Canada and Mexico taking tougher measures to combat migration and drug trafficking at the border. Read More: Biggest American Trade Crossing Gets a Tariff Reprieve, for Now Canada promised to appoint a new fentanyl czar, list cartels as terrorists and join the US in creating a new "strike force" to fight organized crime, drug trafficking and money laundering, among other measures. Mexico promised to send 10,000 National Guard officers to the border to help stem the flow of fentanyl and migration into the US. But that's only part of the full story we report today. Trump has also warned Canada about it's trade surplus with the US and has repeatedly vowed that America doesn't need to buy the produce that it does from its northern neighbor. A trade agreement between the US, Canada and Mexico — the USMCA — is up for negotiation next year, meaning the protracted discussions have only just begun. Trump says tariffs will attract investment to the US and create jobs. There are a lot of dollars at stake. Trade in goods and services between Canada and the US was about $920 billion in 2023, while trade between Mexico and the US was nearly $900 billion, according to data from the US Department of Commerce. Read More: Canada Fumes, Fears Lost Business With Trump Trade Talks Ahead Chip McElroy's namesake company, based in Tulsa, Oklahoma, creates thermoplastic fusion equipment that include semiconductor fabs, data centers and power plants. The business relies on imported materials from Canada and Mexico, and the tariffs as proposed would have cost an estimated $2 million over the next 12 months — charges he would need to pass along to customers. "This latest salvo of tariffs is hugely problematic," McElroy said. Sourcing his entire supply chain in the US isn't simple. "Even if we could wave a magic wand tomorrow, there are things that we need from our trading partners to the north and to the south and even from the east." His biggest fear: a cycle of retaliation. "It is going to be very, very bad for our business and very bad for the US economy and ultimately very bad for our workforce," he cautioned. Related Reading: —Enda Curran in Washington Click here for more of Bloomberg.com's most-read stories about trade, supply chains and shipping. | 
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