Windsor Businesses Stall Amid USMCA Trade Deal Uncertainty

Tariff tensions and potential renegotiation of the US-Mexico-Canada trade agreement are weighing heavily on Windsor's economy.

Mar. 28, 2026 at 10:07am

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Windsor, Ontario, a manufacturing hub heavily dependent on the US automotive industry, is facing economic uncertainty due to the potential renegotiation of the United States-Mexico-Canada Agreement (USMCA). Businesses in the region, including sign maker FASTSIGNS, are reporting reduced orders, longer payment terms, and tougher price negotiations as customers grapple with the deal's uncertain future. The impact is being felt across Windsor's economy, from housing to skilled trades, as residents and companies struggle with a loss of confidence.

Why it matters

Windsor is one of the Canadian cities most exposed to US trade policies and tariffs, with about 90% of its exports crossing the border. The USMCA, which exempts most Canadian goods from US levies, is crucial to the region's economy. Any disruption to the trade deal could have severe consequences for Windsor's manufacturing-dependent businesses and residents.

The details

Windsor-based FASTSIGNS, a custom sign and graphics company, saw orders from its core automotive clients dry up last year, its toughest since the pandemic. A new project launch this year provided some relief, but customers are now demanding longer payment terms, placing smaller orders, and bargaining harder on prices due to USMCA uncertainty. The US has started formal negotiations with Mexico over the deal's renewal, while Canada has only held informal talks so far. Hundreds of Windsor's small parts and equipment manufacturers, who rely on close integration with Detroit's auto industry, have faced shrinking demand as order books dried up. This pushed the region's unemployment rate above 11% in June 2022, the highest among major Canadian cities.

  • In March 2022, US President Donald Trump exempted USMCA-compliant exports from Canada from tariffs.
  • Earlier this year, carmaker Stellantis NV added a third shift at its local plant, and LG Energy Solution said it is building a battery facility in Windsor.
  • In February 2023, Windsor's residential real estate sales fell 15%, almost double the national decline of 8%.

The players

FASTSIGNS

A Canadian company that designs and installs custom business signs and graphics, based in Windsor, Ontario.

Jackie Raymond

Co-owner of FASTSIGNS.

Ryan Donally

CEO of the Windsor-Essex Chamber of Commerce.

Brent Klundert

Owner of BK Cornerstone, a local real estate builder in Windsor.

Lido Zuccato

Chair of the School of Skilled Trades and Apprenticeships at St. Clair College in Windsor.

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What they’re saying

“CUSMA is very, very important. It trickles down to every little business, right down to your barber shop and your nail shop, which will affect all of our customers.”

— Jackie Raymond, Co-owner, FASTSIGNS

“When Donald Trump... does make ​a ​threat, we feel it first, and we feel it hardest.”

— Ryan Donally, CEO, Windsor-Essex Chamber of Commerce

“If we can get through our trade agreements with the U.S., I think that will add a lot of confidence.”

— Brent Klundert, Owner, BK Cornerstone

“That deep relationship is pretty hard to divorce.”

— Ryan Donally, CEO, Windsor-Essex Chamber of Commerce

What’s next

Mexico has started formal negotiations with the US over the USMCA's renewal, which are due to be completed by July 1. Canada has so far only held informal talks on the deal, which legally does not fall apart even if negotiations are not completed by that deadline.

The takeaway

The uncertainty surrounding the future of the USMCA trade deal is having a significant impact on Windsor's economy, which is heavily dependent on cross-border trade with the US. Businesses are facing reduced orders, longer payment terms, and tougher price negotiations, while residents are grappling with a loss of confidence in the local economy. Resolving the trade deal's status is crucial for Windsor to regain its economic footing.