Some of Canada’s largest labour organizations are urging the federal government to abandon appeasement and fight back against U.S. President Donald Trump’s latest threat to impose 35% tariffs on Canadian goods that don’t comply with trade agreement rules.
The ultimatum, announced in a social media post by Trump yesterday and set to take effect August 1, demands Canadian companies relocate production to the U.S. or face punishing tariffs. The threat comes as Prime Minister Mark Carney and Trump negotiate to reach a trade deal by the newly announced August 1 deadline.
Union leaders condemn ‘economic extortion’
Unifor National President Lana Payne called the move “reckless economic extortion” and said Canada must respond with force.
“There’s only one answer to this extortion from the U.S. president: push back — hard,” said Payne. “Canada must use every bit of leverage we have. Workers are counting on our government to defend their jobs and industries. Concessions won’t stop a bully, but collective strength will.”
Canadian Labour Congress President Bea Bruske described the tariff threat as “a calculated attack” designed to force Canada into submission.
“Canada does not cave. We do not retreat. And we will not be intimidated,” Bruske said in a statement Friday.
Escalating trade tensions
The 35% tariff threat represents the latest escalation in ongoing trade tensions. Trump has already imposed tariffs on Canadian autos, steel and aluminum, and announced a 50% tariff on copper earlier this week.
Payne warned against falling for what she called Trump’s negotiation strategy.
“Trump’s playbook is clear, implement and threaten sky-high tariffs to condition us into accepting a lower baseline tariff as the new normal. We must never fall for it,” said Payne. “That’s not negotiation—that’s coercion. We will not settle for a future where Canadian jobs are held hostage to the U.S.”
Calls for aggressive counter-measures
Both labour leaders are pushing for strong retaliatory measures rather than continued efforts to accommodate U.S. demands.
Bruske noted that Canada has already spent millions addressing border issues, rescinded its digital services tax, and scaled back counter-tariffs in response to previous U.S. pressure.
“Appeasement does not work,” she said. “In response to Trump’s demands, Canada has spent millions to address border issues, we rescinded our digital services tax, and scaled back counter-tariffs. Like a bully, Trump’s only response to Canada’s good-faith efforts is nothing but escalation.”
The CLC is calling for immediate counter-tariffs, export taxes on Canadian energy sold to the U.S., and mandates requiring national infrastructure projects to use Canadian steel, aluminum and lumber.
Protecting Canadian sovereignty
Unifor is urging the federal government to invoke powers under the Foreign Extraterritorial Measures Act to penalize firms that relocate production outside Canada in response to Trump’s tariff policies, including potential import prohibitions.
The union also wants Canada to immediately develop a national reserve strategy with stockpiles of key inputs like aluminum and critical minerals if no deal is reached by August 1.
Impact on workers and employers
The tariff threats create uncertainty for Canadian businesses and workers across multiple sectors. Both labour leaders acknowledged the potential for job losses and economic disruption but emphasized the need for solidarity rather than capitulation.
“This won’t be easy. There will be disruptions. Some of us will face layoffs,” Bruske told Canadian workers. “But Canadian workers are not strangers to hard times. We know how to fight—and we know how to win.”
The CLC is also calling for enhanced Employment Insurance, expanded Work-Sharing programs, and emergency income supports for affected workers and communities.
Both organizations represent hundreds of thousands of Canadian workers across major industries that could be affected by the tariff threats. Unifor represents 320,000 workers in the private sector, while the CLC speaks for millions of unionized workers nationwide.
