Tariffs are driving up costs and slowing growth for Chatham-Kent businesses.
According to an information report being presented to council tonight, Chatham-Kent’s unemployment rate climbed to 9.9 per cent in August 2025, up from 8.4 per cent in August 2024.
Stuart McFadden, Director of Economic Development and Tourism Services, said automotive parts and accessory manufacturers are pivoting in response to the changing market. He added that the federal government’s recent decision to increase defense spending is providing new opportunities for local manufacturers.
“In the past, much of Canada’s purchasing in the defense sector has been made through other countries. A push towards a Canadian built solution is providing an opportunity for manufacturers to enter a new market and diversify their business portfolios,” McFadden wrote.
The agriculture sector faces minimal tariff issues, with no U.S. tariffs on Canadian crops. However, the Chatham-Kent Agriculture Advisory Committee noted that used equipment sales are affected as the U.S. assesses Canadian steel content. Rising input costs, including fertilizer and pesticides, are also impacting farm profitability.
Retail and tourism are feeling the effects, too. McFadden said shoppers are being more cautious due to higher prices. Meanwhile, the VisitCK “Ontario Staycation Ideas” portal saw 103,960 visits between April and early November 2025.
“The overall strength of the businesses throughout Chatham-Kent has been displayed in the past. During the worldwide financial crisis in 2008 and most recently dealing with COVID-19 in 2020, businesses found a way to navigate through the issues. Some of the lessons learned through those times are guiding the business community today as they deal with unknowns caused by tariffs,” McFadden wrote.
The report recommends that Economic Development Services continue connecting with local businesses to monitor tariff impacts, promote Shop Local/Made in CK campaigns, and maintain the Tariff Support webpage to help businesses stay informed and explore trade opportunities.
