Canada’s retaliatory tariffs were the tipping point for Aeris Protective Packaging Inc. Founder and president Michael Leiberman, a born-and-raised Montrealer, is opening a manufacturing plant south of the border to keep his business alive.

The local company’s move highlights a growing exodus of Canadian manufacturers driven across the border by escalating trade crossfire and uncompetitive domestic business costs. As cross-border tariffs continue to hurt small and medium-sized businesses, industry experts warn that Canada’s economy is ill-equipped to sustain a prolonged trade war with its largest partner.

For Aeris, which operates out of Montreal and has 14 employees, the decision comes down to survival: Leiberman says 70 per cent of the company’s clients are in the U.S., and he can’t afford to lose them.

A KPMG survey published in July found four in 10 Canadian manufacturers had either moved production to the U.S. or were considering it, citing tariffs and Canada’s business climate as key factors.

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