Could higher tariffs mean more layoffs in Canada? What industry experts say
Global News
With a higher base tariff on Canadian imports into the United States, industry experts say the federal government needs to prioritize supporting Canadian workers.
Canada’s job market could be getting squeezed if the economy shrinks further, and an increase in tariffs could mean more tough times ahead for some sectors and industries — which experts say could lead to further job cuts.
“We are in a very difficult moment and workers are already feeling the pain, but it would be even more destructive if we were to sign a bad deal,” says national president Lana Payne of Unifor, a private sector union which employs 320,000 workers in Canada.
“We need to put maximum pressure on the United States so that they are feeling the heat because it’s getting worse and worse there now. And that puts us in a better position to be able to negotiate as well.“
On Friday, the trade war escalated yet again after United States President Donald Trump increased tariffs on Canada by 10 per cent. This means that all Canadian goods imported into the U.S. that do not comply with the terms in the Canada-United States-Mexico Agreement free trade agreement (CUSMA) will see a 35 per cent duty added on — a jump from 25 per cent.
The new tariff effectively increases the base level for all goods that do not comply with the agreement, but there continue to be exceptions. These include a 50 per cent tariff on Canadian steel, aluminum and copper products, 25 per cent on automobiles and parts, and a 10 per cent tariff on Canadian energy imports into the U.S.
Prime Minister Mark Carney said he was “disappointed” in Trump’s decision to increase tariffs, after several weeks of negotiations failed to reach a new trade deal by Friday’s deadline.
Prior to the deadline, Carney said he will only make a deal that is “best for Canada.”
“The Canadian Federation of Independent Business (CFIB) supports the view that no deal is better than a bad deal, but the lack of resolution means small firms will not be able to plan for the future or continue to put off difficult choices,” says president Dan Kelly at the CFIB.
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