07:03 AM EDT, 08/11/2025 (MT Newswires) -- Canadian manufacturing and wholesale trade reports on Friday will be in focus to help gauge the impact that United States tariffs are having on the trade-exposed industrial sector, said RBC.

Early trade reports have been showing most Canadian exports continue to enter the U.S. duty free under an exemption from tariffs for products compliant with the CUSMA. Canada has maintained a relative advantage in accessing the U.S. market, noted the bank.

However, sector specific tariffs on steel, aluminum, and the non-U.S. content of motor vehicle exports, along with new tariffs on copper products in August still apply, stated RBC. Those tariffs are raising costs for U.S. buyers and a slowdown in their manufacturing activity could spill over to Canada, given heavily integrated cross-border supply chains.

Statistics Canada's advance indicator for manufacturing sales rose 0.4% month over month in June, led by oil and coal products likely reflecting a jump in oil prices as well as food manufacturing sales. A rise in manufacturing industrial product prices suggests that real (volume) manufacturing sales were likely little changed compared with May, and still down about 3% from the end of 2024.

RBC expects core wholesale sales, which exclude oil and its products, oilseed and grain, to rise 0.7% month over month from 0.1% in May. Growth appeared to be broad based with five of seven subsectors contributing to the increase.