The reintroduction of a 25 per cent tariff on Canadian steel and aluminum exports by U.S. President Donald Trump is drawing sharp criticism from industry leaders and labour unions, who warn it will harm workers and businesses on both sides of the border.
Unifor, Canada’s largest private-sector union, says the tariffs, which took effect March 12, undermine a 2019 agreement between Canada and the U.S. that ended previous trade restrictions on the metals. The deal included commitments to monitor the metals market, prevent unfairly subsidized imports, and restrict transshipment of foreign steel and aluminum through North America.
“Trump is knowingly inflicting damage to the North American manufacturing sector with these inflationary tariffs that will injure workers, eliminate jobs, and hurt consumers,” said Unifor National President Lana Payne.
Unifor Quebec Director Daniel Cloutier accused the U.S. of disregarding its commitments under the 2019 pact. “Canada has lived up to its commitments and the U.S. knows it. Tariffs on Canadian steel and aluminum have nothing to do with trade in those sectors but are instead an assault designed to weaken Canada’s economy and steal our jobs,” he said.
The latest trade measures come as Trump threatens further economic penalties, including tariffs on Canadian auto exports that could take effect April 2. The U.S. president suggested the proposed duties would “essentially, permanently shut down the automobile manufacturing business in Canada.”
Payne rejected the claim, emphasizing Canada’s longstanding role in North America’s auto industry. “America does not have a monopoly on auto production. Canada has been manufacturing vehicles for over a century, and we are the largest Detroit Three purchasing market outside of the U.S.,” she said. “These are our jobs, and we will defend them with everything we have. You sell here, you must also build here.”
The trade dispute has rattled financial markets, with U.S. stock indexes dropping amid fears of a broader economic downturn. Trump has also floated the possibility of a 25 per cent tariff on all Canadian goods.
“The reality is this unjustified and unprovoked trade war hurts working people,” said Payne. “This could end today if the U.S. removes the threat of tariffs and gets to the bargaining table to start the CUSMA review process.”
Unifor represents 320,000 workers across various industries in Canada and has been vocal in advocating for fair trade policies. The federal government has not yet announced any retaliatory measures in response to the new U.S. tariffs.
