Crown Royal is set to close its Amherstburg, Ont., bottling plant by February 2026, shifting part of its operations to the United States and consolidating production within Canada. The whisky brand, owned by U.K.-based Diageo, will continue to mash, distill and age in Gimli, Man., but says restructuring its supply chain is necessary to cut costs and move production closer to its American customer base. The Amherstburg closure, which will affect about 200 workers, reflects broader corporate decisions driven by efficiency and proximity to the U.S. market.

Premier Doug Ford resorted to theatrics, castigating the company for abandoning Canada. His response contrasted with the silence surrounding Brookfield Asset Management’s decision to shift its head office to New York in late 2024. The Toronto-founded asset manager was chaired until recently by Mark Carney.

The fact is the underlying structural differences between doing business in Canada and the United States. Canadian firms face combined corporate tax rates between 25 and 31 per cent depending on the province, along with higher payroll levies and stricter labour and environmental standards. In contrast, the U.S. federal corporate tax rate is 21 per cent, with state rates ranging from zero to about 12 per cent. States also compete aggressively for investment with subsidies, tax breaks and looser regulatory regimes, making them attractive for manufacturers and investors seeking lower costs.

Recent capital flow data show the pressures more clearly. Statistics Canada reported net portfolio outflows of $43.7 billion in the second quarter of 2025, with the first half of the year recording a total of $85.9 billion in net outflows. Over the past decade, Canada has steadily lost some corporate head-office capacity, with the number of head offices declining by nearly five per cent between 2012 and 2023. 

The broader trend underscores how Canadian capital is increasingly invested abroad while corporations and investors weigh the burden of domestic regulation against U.S. incentives. Rather than tackling tax and trade issues political leaders have turned to symbolic gestures and bailouts, leaving unresolved the structural challenges driving businesses and wealth south of the border.