The Globe and Mail reports in its Friday, Jan. 3, edition that the new year began with seemingly positive news for Canada's struggling manufacturing sector. The Globe's Jason Kirby writes that the potential for U.S. tariffs on Canadian imports, however, may be artificially boosting growth. Canada's manufacturing activity grew in December at its fastest pace in nearly two years, with the S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) rising to 52.2, indicating growth. In contrast, global and U.S. manufacturing contracted during the same period. Canada's strong factory activity is likely driven by U.S. customers looking to stockpile inventories before a possible 25-per-cent tariff on imports from Canada under the incoming Trump administration. The sustainability of the current recovery versus a temporary response to trade uncertainty is crucial for an underinvested manufacturing sector in Canada. National Bank of Canada economists say Canada now has the smallest manufacturing sector, as a share of the economy, among the G7 countries. It says Canada may become irrelevant in North American and global manufacturing supply chains without decisive action, jeopardizing innovation and economic growth.