Trump’s job-killing tariffs threaten Canadian auto sector

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Unifor is calling on the federal government to keep all options on the table in the escalating trade war with the U.S. as new auto tariffs will fall on Canada’s auto sector at midnight tonight.

“Trump is gaslighting us, wanting us to be grateful for not having reciprocal tariffs imposed on Canada while he tries to pick off our domestic industries one by one. We won’t fall for it,” said Unifor National President Lana Payne. “Today’s announcement offers absolutely no relief to Canadian workers who are ready to fight for every job, every plant, every community in this U.S.-initiated trade war.”

In today’s tariff announcement at the White House, U.S. President Donald Trump did not include Canada in sweeping country-wide reciprocal tariffs. However, previously announced tariffs on non-CUSMA compliant Canadian-made vehicles will come into effect on April 3. The U.S. will also continue its existing 25% tariffs on Canadian steel and aluminum as well as other tariffs on Canadian exports, including softwood lumber, and threatened tariffs on pharmaceuticals, copper, semiconductors, wood products and others expected to come into force in the future.

“No one can deny what Trump is trying to do: divert investment away from Canada, steal Canadian jobs, and threaten our sovereignty,” added Payne. “The reality is that this trade war is just getting started and Canada is still feeling the pain of U.S. trade penalties disproportionately worse than any country in the world. That’s why Canada needs the strongest possible response to these tariffs while we work towards building a more resilient Canadian economy.”

Unifor’s comprehensive submission to the federal government’s U.S. tariff consultations, released today, calls for a strong response to U.S. economic aggression, including tailored counter-tariff measures for the auto sector. Industry experts anticipate that cost of new vehicles will rise dramatically with a slowdown of new vehicle sales predicted.  

Read Unifor’s recommendations to protect jobs and build a more resilient Canadian economy here