The global economy has entered a new phase of strategic recalibration, and nowhere is this more evident than in the shifting corporate footprints across North America and Europe. Since January 2025, a fresh wave of tariffs primarily imposed by the United States has triggered a cascade of decisions by multinational companies to relocate operations, restructure supply chains, and rethink their geographic allegiances. What was once a slow drift toward regionalization has become a sprint toward American soil.
This shift is not merely about avoiding taxes or chasing cheaper labor. It’s about survival in a world where trade policy has become weaponized. The U.S., under renewed protectionist leadership, has aggressively targeted imports from Canada, the UK, and the European Union, citing national security, energy independence, and industrial competitiveness. The result? A dramatic reordering of production strategies, investment flows, and employment patterns.
For Canada particularly Ontario the consequences have been swift and painful. Once a cornerstone of North American manufacturing, Ontario now finds itself on the defensive as companies flee rising costs and uncertain trade conditions. From auto parts to spirits, from electricity to chocolate, firms are packing up and heading south not because they want to, but because they feel they must.
Meanwhile, the U.S. is positioning itself as a haven for reshoring, offering incentives, infrastructure, and market access that are hard to ignore. States like Michigan, Ohio, South Carolina, and Texas are welcoming foreign investment with open arms, while Canadian and European workers brace for layoffs and economic disruption.
This article explores the companies that have already made the leap since January 2025, the industries poised to follow, and the human cost particularly in Ontario of this accelerating migration. It’s a story of tariffs, yes, but also of transformation, resilience, and the high-stakes chess game of global commerce.
Tariffs Since January 2025 Spark Corporate Migration to the U.S.
Since the beginning of 2025, a new wave of tariffs particularly from the United States targeting Canada, the UK, and Europe has triggered a notable shift in corporate strategy. Companies are relocating operations to the U.S. to avoid rising costs and maintain access to American consumers. The fallout has been swift, reshaping supply chains and labor markets on both sides of the border.
Canadian Companies: A Surge in Relocation
In March 2025, the U.S. doubled tariffs on Canadian steel and aluminum from 25% to 50%, and imposed a 25% duty on electricity exports from Canada to New York, Minnesota, and Michigan. These measures sent shockwaves through Canadian industry, prompting many firms to reassess their U.S. exposure.
Specific Moves:
- Ontario-based auto manufacturers began shifting assembly operations to Michigan and Ohio to avoid looming tariffs on Canadian-made vehicles.
- Electricity producers explored building U.S.-based generation facilities to bypass the new surcharge, which could cost American customers up to $100 more per month.
- Crown Royal (Diageo) announced in August 2025 the closure of its bottling facility in Amherstburg, Ontario, effective February 2026. Bottling operations for U.S. markets will be relocated to American facilities to streamline logistics and avoid tariff-related costs.
A February 2025 KPMG survey found that 48% of Canadian companies were actively planning to move operations or investments to the U.S. to offset the impact of tariffs.
Ontario Job Losses: Tariffs Take a Toll
The economic consequences in Ontario have been severe. According to the province’s Financial Accountability Office, Ontario lost 38,000 jobs in Q2 2025, with manufacturing alone shedding 29,400 positions. The unemployment rate jumped to 7.8%, the highest since 2012 outside of pandemic years.
Windsor, a manufacturing hub, was hit especially hard, with joblessness climbing to 11.2% the highest in the province.
Key Sectors Affected:
- Manufacturing: Auto parts, steel, aluminum, and beverage bottling including Crown Royal downsized or relocated.
- Transportation & Warehousing: Declines followed supply chain shifts to U.S. facilities.
- Agriculture: Export-oriented farms faced reduced demand and rising costs.
While the Ontario government unveiled a $70 million tariff relief package and opened $1 billion in emergency loans, critics argue these measures fall short of addressing long-term structural damage.
“These numbers are truly alarming. Ontario workers are facing the worst job losses in more than a decade,” said NDP finance critic Jessica Bell.
European and UK Firms: Strategic U.S. Expansion
European and British companies have also responded to tariff uncertainty by expanding their U.S. footprint.
Notable Shifts:
- BMW and Mercedes-Benz accelerated expansion of their U.S. plants in South Carolina and Alabama to avoid potential tariffs on EU-made vehicles.
- Unilever, headquartered in the UK, increased U.S. production of brands like Dove and Hellmann’s to hedge against Brexit-related disruptions and U.S. import duties.
- Lindt & Sprüngli, the Swiss chocolatier, announced plans to invest up to $10 million to shift production of its iconic gold-wrapped Easter bunnies and other seasonal chocolate figures from Germany to the U.S. Lindt is expanding its facility in Stratham, New Hampshire, to avoid a 15% U.S. import tariff on EU-made confectionery.
Who’s Next? Industries and Companies Poised to Follow
As tariff pressures mount, several industries and companies are actively considering or preparing to relocate operations to the U.S. to protect margins and secure supply chains.
Prime Candidates:
- Technology & Semiconductors: Apple is exploring increased U.S. production of MacBooks and iPhones to reduce reliance on overseas manufacturing. Intel and TSMC are investing billions in chip plants in Ohio, Arizona, and other states to mitigate international trade risks.
- Automotive: Honda will produce its next-generation Civic hybrid in Indiana instead of Mexico. Volkswagen and Volvo Cars are evaluating U.S. production for high-end models like Audi and Porsche.
- Consumer Electronics: Samsung and LG Electronics are shifting appliance production from Mexico to U.S. plants in Tennessee and South Carolina.
- Luxury Goods & Spirits: Campari is assessing U.S. expansion to avoid tariffs on Italian spirits. LVMH is considering ramping up U.S. production for its luxury brands.
- Hygiene & Packaging: Essity, a Swedish tissue and hygiene product maker, may move more production from Mexico and Canada into the U.S.. Launchpad Co-Pack continues to attract U.S. clients seeking tariff-free bottling solutions.
Bottling Industry: A Case Study in Cross-Border Strategy
The bottling and packaging sector offers a vivid example of tariff-driven relocation. Launchpad Co-Pack, a Canadian bottling company based in Ontario, reported a surge in U.S. clients seeking to move production south.
“Before, moving production was a secondary consideration. Now it’s a strategic priority,” said CEO Scott Morrison.
Conclusion: A Redrawn Map of Global Business
The post-January 2025 tariff landscape has redrawn the map of global business. What began as a political maneuver has evolved into a full-scale economic migration. Companies across sectors from auto and tech to spirits and chocolate are shifting operations to the U.S. not just to avoid tariffs, but to future-proof their supply chains and stay competitive in a volatile trade environment.
For Ontario, the consequences are already visible: shuttered plants, rising unemployment, and a growing sense of economic vulnerability. The province’s traditional strengths in manufacturing and export are being tested like never before. While government relief efforts offer short-term support, the long-term solution may require a reimagining of Ontario’s industrial strategy one that embraces innovation, domestic resilience, and global agility.
As more companies weigh their options, the U.S. continues to position itself as a magnet for reshoring. Whether this trend accelerates or stabilizes will depend on the next moves in trade policy but for now, the shift is unmistakable, and the stakes are high.