Spinrite plant closure in Listowel costs 140 jobs; Ford government blames Trump-era tariffs, while critics demand stronger industrial strategy.
Major Layoffs Rock Small Ontario Town
More than 140 workers in Listowel, Ontario, are out of work following the closure of Spinrite’s manufacturing facility, a major employer in the region. The yarn and sewing thread maker’s decision has sent shockwaves through the community of fewer than 10,000, prompting urgent calls for support and renewed scrutiny of Ontario’s economic strategy.
Government Links Closure to U.S. Trade Tariffs
Matthew Rae, the Ford government MPP representing the area, attributed the layoffs directly to U.S. tariffs imposed during Donald Trump’s presidency. Speaking in the Ontario legislature on June 4, Rae said, “The number one reason is the U.S. Trump tariffs, period.” The closure was formally acknowledged at Queen’s Park just as the legislative session ended for the summer.
Critics Say Ontario Lacks Real Protection Plan
Opposition voices were quick to criticize the government’s response. Ontario NDP MPP Catherine Fife accused Premier Doug Ford of breaking promises made during the last election to “protect Ontario” jobs. “People need action, not excuses,” she said, calling for a comprehensive industrial strategy to shield workers from future economic shocks.
Rising Unemployment Underscores Economic Uncertainty
The layoffs at Spinrite come amid a broader wave of job losses across the province. Statistics Canada reported Ontario’s unemployment rate has climbed to 7.9%, driven in part by auto sector instability linked to ongoing tariffs and trade disputes. Temporary closures at major plants, including Stellantis in Windsor and Ford in Oakville, have compounded concerns about economic resilience.
Funding Programs Announced, Relief Still Unclear
Although the Ford government has not rolled out targeted relief for affected sectors, it did highlight several economic support measures in the 2025 budget. These include over $30 billion in relief initiatives such as the $1.3 billion Ontario Made Manufacturing Investment Tax Credit and a $5 billion Protecting Ontario Account. However, critics argue that access to these funds remains opaque and insufficient for immediate needs.
Spinrite’s Silence and Community Fallout
Spinrite has yet to confirm whether it sought provincial support before closing its Ontario operations. Meanwhile, the municipality of North Perth has described the job losses as “shocking” and vowed to assist affected families. As community leaders scramble to respond, the incident has reignited debate over how well Ontario is prepared for external economic shocks in a volatile global landscape.
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