The Ford government is facing accusations it has abandoned its promise to “protect Ontario” from U.S. President Donald Trump’s tariffs after a major yarn maker shuttered its retail storefront and manufacturing facility in a southwestern Ontario community.
Spinrite — which makes yarn and sewing thread — recently announced the closure of its Listowel, Ont., facility, shedding more than 140 jobs in the community of fewer than 10,000 people.
The decision was so impactful on the small town of North Perth that the local municipality issued a statement calling it “shocking” and promising to help the families of workers at the plant.
The Ford government also acknowledged the closure at Queen’s Park before the legislature rose for its summer break, blaming the job losses on tariffs from Trump.
“I want to share with this House that Spinrite in Listowel, unfortunately, is closing its manufacturing production,” government whip Matthew Rae, who represents the area, said on June 4.
“That was announced yesterday—140 jobs gone from rural Ontario. And the number one reason is the U.S. Trump tariffs, period. That is the reason.”
Government critics, however, pointed out that the Progressive Conservatives ran their most recent election campaign under the promise they would “protect Ontario” from the impacts of tariffs.
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“Ford promised to protect Ontario jobs,” Ontario NDP MPP Catherine Fife said in a statement. “Press releases and empty words won’t stabilize these tariff-vulnerable sectors during this storm. Ontario urgently needs a new industrial strategy that strengthens local manufacturing, making sure workers aren’t left behind. People need action, not excuses.”
The Spinrite closures come as Ontario struggles with growing unemployment figures.
The latest data from Statistics Canada shows the unemployment rate in Ontario sits at 7.9 per cent, with the province facing “an uncertain economic climate brought on by the threat or imposition of tariffs on motor vehicle and parts exports.”
Asked about the unemployment figures, the government has said it is working to make sure “Ontario not only weathers the storm, but emerges stronger and more competitive.”
Auto makers, as Statistics Canada indicated, have been hit particularly hard.
Several major plants located in southwestern Ontario have announced a series of temporary shutdowns and closures since tariffs on auto parts and vehicles were imposed.
Stellantis in Windsor, Ont., has initiated shutdowns, while the Ford plant in Oakville remains closed for retooling. A Brampton Stellantis plant, which was closed for retooling, has “temporarily” paused that work, while GM cut the third shift at its Oshawa facility.
The Ford government has yet to announce direct relief for the auto sector or others in response to tariffs, but it did create several streams in its most recent budget.
The Progressive Conservatives also included a $1-billion-plus manufacturing tax credit and the $5-billion Protecting Ontario Account, which officials said companies could access once they had exhausted other forms of federal or provincial funding relief.
A spokesperson for Vic Fedeli, the minister of economic development, job creation and trade, said the government was working hard to keep jobs in the province.
“In the face of global economic uncertainty caused by President Trump tariffs and tariff threats, our government is taking action to protect the more than 800,000 workers in Ontario’s manufacturing sector,” they said in a statement.
“Through our 2025 Budget, we are providing over $30 billion in tariff relief, including $1.3 billion to expand the Ontario Made Manufacturing Investment Tax Credit to ensure manufacturers continue to invest in their operations, employees, and growth right here in Ontario, as well as $11 billion in relief for workers and businesses.”
Global News contacted Spinrite to ask if it had applied for support from the provincial government before closing its Ontario facility. A response was not received in time for publication.
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