Manitoba

Liberal Leader Carney says Winnipeg's NFI Group may be exempt from Canada's counter-tariffs

Liberal Leader Mark Carney says Canada may exempt Winnipeg's NFI Group from Canadian counter-tariffs on U.S. materials to allow the bus manufacturer to remain competitive on both sides of the border.

Bus manufacturer imports some U.S. materials to make shells of buses sent back to United States

A man in a suit waves while he walks in front of people and a bus inside a large garage-like structure.
Mark Carney at a campaign stop Tuesday at New Flyer Industry Group in Winnipeg. The Liberal leader says NFI Group would be exempt from Canadian counter-tariffs on U.S. materials. (Bartley Kives/CBC)

Liberal Leader Mark Carney says Canada may exempt Winnipeg's NFI Group from Canadian counter-tariffs on U.S. materials to allow the bus manufacturer to remain competitive on both sides of the border.

During a campaign stop in Winnipeg Tuesday, Carney said there is a "need for so-called remission orders" on counter-tariffs so NFI and all of its subsidiaries remain competitive in Canada and the United States.

"That's smart from the Canadian perspective and that's the kind of approach this government is taking," the Liberal leader said at a manufacturing facility at NFI's campus in the northeast Winnipeg Transcona area.

Early last month, Canada imposed 25 per cent counter-tariffs on American goods, in retaliation for a 25 per cent tariff slapped on virtually all Canadian goods by U.S. President Donald Trump.

NFI, one of the world's largest bus manufacturers, employs about 8,500 people in nine countries. President and CEO Paul Soubry said his company has made efforts for years to work around U.S. protectionism and keep itself afloat in the face of the current trade war.

"Two-thirds of all of our transit buses are physically 100 per cent made in the United States, anyway. The one-third, we build the shell here and we ship them across the border, so I don't see a scenario where we're shutting down Winnipeg and moving it all to the United States," Soubry said after Carney spoke.

"Are we going to have to adjust some of the capacity and some of the … production lines and so forth? We'll see how that comes out. We do have a good-sized Canadian customer base."

A man in a suit standing in front of buses and a Canadian flag.
NFI Group president and CEO Paul Soubry says by September, all the buses made by his company for Canadian customers will be built entirely in Canada. (Bartley Kives/CBC)

By September, all buses made by NFI Group for Canadian customers will be built in Canada, he said, thanks to $38 million worth of federal and provincial funding announced in October, before Trump was re-elected.

"There's a win-win here, because while we can do this and increase jobs for Canadians — high-skilled, high-paid, technical jobs — we free up U.S. capacity that we have for U.S. customers," Soubry said.

NFI Group has weathered a difficult five years, starting with a major slowdown of orders during the pandemic and supply-chain issues that followed it, Soubry noted, adding several of NFI Group's competitors did not survive. 

Two men shake hands in front of flags in a legislature lobby.
Liberal Leader Mark Carney shakes hands with Manitoba Premier Wab Kinew as he arrives at the legislature on Tuesday. (Adrian Wyld/The Canadian Press)

Premier meets with leaders

Carney also met Manitoba Premier Wab Kinew during his Winnipeg visit to discuss retaliatory measures ahead of a new round of U.S. tariffs set to come into effect Wednesday.

Kinew said after the meeting some Manitoba sectors will be part of that response.

"We've heard that's needed," he said. "So you think about … value-added ag manufacturers, they're going to be facing a tariff in the States starting tomorrow. But an American company is going to be able to sell their products in Canada without facing a tariff? That doesn't really make sense."

The premier said the government has been working with other industries like the aerospace and transportation sector so they're not impacted.

"Nobody has a line of sight into the inside of Donald Trump's mind at any time," he said. "What I would say is that all the legwork is done so that we'll be able to respond relatively quickly."

A man stands at a podium with the words "Canada Strong" and dozens of people holding signs with Canadian flags behind him.
Carney addresses a campaign rally at the RBC Convention Centre Tuesday evening. (Adrian Wyld/The Canadian Press)

Carney ended his Winnipeg visit with a rally at the RBC Convention Centre, where he said he told Trump last week that he rejects "any attempts to weaken Canada." He said it's Canada's "strength" and resources that the U.S. wants.

"I'm not sure we can change Donald Trump," Carney said, arguing that Conservative Leader Pierre Poilievre won't stand up to the president. "We can control our economic destiny with our plan."

Liberal Leader Carney says Winnipeg's NFI Group may be exempt from Canada's counter-tariffs

2 days ago
Duration 1:22
Liberal Leader Mark Carney says Canada may exempt Winnipeg's NFI Group from Canadian counter-tariffs on U.S. materials to allow the bus manufacturer to remain competitive on both sides of the border.

Clarifications

  • An earlier version of this story indicated Liberal Leader Mark Carney said Canada will exempt Winnipeg's NFI Group from Canadian counter-tariffs. In fact, he said Canada may exempt NFI.
    Apr 01, 2025 5:46 PM EDT

With files from Ian Froese and The Canadian Press