Canada’s largest private-sector union is warning that President Donald Trump’s escalating tariff threats on Canadian-built vehicles could devastate an integrated North American auto industry and eliminate thousands of jobs on both sides of the border.
Unifor condemned Trump’s latest comments after the U.S. president declared Wednesday that he “really doesn’t want cars from Canada” and suggested the recently imposed 25 per cent tariff on Canadian vehicles “could go up.”
“Trump has made it clear that he wants to take our auto jobs and our plants – he can’t have them,” said Unifor National President Lana Payne. “Canada didn’t take U.S. jobs, and we’re not going to let him take ours.”
The confrontation comes just weeks after the U.S. imposed a 25 per cent tariff on automobile imports, with only partial exemptions for vehicles manufactured under the Canada-U.S.-Mexico Agreement. Beginning May 3, those tariffs will extend to Canadian auto parts, which are essential components for vehicles assembled in the United States.
Economic impact concerns
Canada exports approximately $75 billion worth of cars and parts to the U.S. annually, importing roughly the same amount. Economic forecasts suggest the tariffs could severely reduce North American auto sales, resulting in layoffs throughout the automotive sector.
“Trump thinks he can move auto plants and dismantle an entire supply chain system overnight. He can’t,” said Payne. “These tariffs are not just dangerous, they are destructive.”
The North American automotive industry is among the world’s most integrated manufacturing sectors, with vehicles and components frequently crossing the border multiple times during production. This integration has created efficiencies that industry experts say would be costly to dismantle.
Union calls for government action
Unifor is urging the Canadian government to respond with “strong and immediate action” to protect the domestic auto industry, including strategic retaliation against Trump’s trade measures.
The union emphasized that Canada purchases more vehicles than it produces, giving it leverage in negotiations with automakers.
“If automakers want to sell here, they have to build here too. That’s what a fair system looks like,” said Payne.
Unifor is advocating for a comprehensive industrial strategy for the automotive sector and measures to ensure manufacturers maintain their production facilities in Canada.
The union represents 320,000 workers across various sectors of the Canadian economy, including thousands in automotive manufacturing and parts production.
