Will U.S. Tariffs On Canadian Products Put Canadian Jobs at Risk?
What Are the Proposed U.S. Tariffs on Canadian Products?
On February 1, 2025, President Trump announced that the United States would implement a 25% tariff on Canadian products. In response, the Canadian government announced its own retaliatory tariffs hours later, on a series of American products. The two governments agreed to hold off on imposing tariffs for 30 days, preventing a potential trade war on a temporary basis. Prior to the temporary pause, more than 65% of Canadian employers took pre-emptive action and prepared for tariffs by shipping goods or products to the United States before President Trump’s inauguration and with several other businesses preparing to increase production south of the Canadian border to avoid tariffs.
How Are Canadian Businesses Responding?
If the temporary pause expires and tariffs become implemented, many Canadians could lose their employment as businesses shift their productions south of the border. No industry that heavily relies on trade with the United States is immune to tariffs, including manufacturing and other export industries. These industries are the ones thar are most likely to experience repercussions for job losses. Meanwhile, workers in the agricultural, service, and raw commodities industries may not experience immediate impacts from the tariffs, however, if the tariffs continue over a long period of time, workers in these industries may experience layoffs as the supply chains between the United States and Canada slowly disentangle over time.
How Can Affected Employees Protect Their Rights?
While both governments have agreed to stand down on a trade war for now, Canadians continue to feel apprehensive about job stability as the United States continues to threaten additional tariffs on Canada and other countries. Should the United States government implement the tariffs and the tariffs persist over time, many Canadians face losing their jobs. If you are an employee who has been terminated from your employment and would like further assistance regarding your separation package, contact us for further information regarding your entitlements online or by phone at (416) 640 2667.
Author – Abby Leung