Canadian workers find themselves at the center of a brewing economic storm as U.S. President-elect Donald Trump threatens to impose new tariffs on Canada and Mexico. The potential tariffs, expected to take effect on January 20th, aim to pressure both countries to address irregular migration and drug trafficking. In response, Canadian officials are considering a list of retaliatory tariffs on hundreds of U.S.-made goods, including American steel products, plastics, and Florida orange juice.
Prime Minister Justin Trudeau has emphasized the importance of dialogue in maintaining robust Canada-U.S. relations. His government has been actively engaging in diplomatic efforts with Trump's incoming administration since the tariff threat emerged. In November, Trudeau visited Trump's Mar-a-Lago estate in Florida to ease economic tensions. Several ministers have also made trips to meet with Trump, including Alberta Premier Danielle Smith, who recently traveled solo to Mar-a-Lago.
The potential tariffs have stirred concern among Canadian workers, particularly the tens of thousands of Unifor members whose jobs could be affected. Lana Payne, a notable voice in the debate, stated:
“Never in modern history has Canada faced such a rebuke from its largest trading partner and closest ally.” – Lana Payne
The list of proposed Canadian tariffs is circulating among senior officials in Ottawa, reflecting the country's readiness to respond. Ontario Premier Doug Ford has been vocal about the need for strong retaliatory measures, arriving at a recent roundtable with Trudeau wearing a hat emblazoned with "Canada is not for sale."
“I’m a strong believer in retaliatory tariffs,” – Doug Ford
Ford emphasized that Canada should not be viewed as an adversary:
“We are not the enemy. We’re your closest ally. We’re your closest friend.” – Doug Ford
The stakes are high, as the U.S. and Canada remain significant trading partners, exchanging $2.7 billion ($3.6 billion Canadian) in goods and services daily across their shared border in 2023. Trump’s initial tariff threat came shortly after his November election victory, suggesting a 25-percent levy on both Canada and Mexico.
Trudeau has assured Canadians that his government is prepared to respond if necessary:
“None of us wants to see tariffs erode a successful partnership between Canada and the United States. But we will be ready with a strong, national response if we need one.” – Justin Trudeau
The potential economic impact has already led to political shifts within Canada. Former Finance Minister Chrystia Freeland resigned in late December following disagreements on how to handle the tariff threat. Freeland had previously highlighted the seriousness of the situation:
“We need to take that threat extremely seriously,” – Chrystia Freeland
Unifor, representing many workers in vulnerable sectors, has issued a public letter urging the Trudeau administration to consider robust responses to Trump's proposal. Lana Payne underscored the gravity of the situation for Canadian workers:
“Threatening the livelihoods of Canadian workers — including tens of thousands of Unifor members in trade-exposed sectors — has crossed a dangerous line. This cannot be tolerated.” – Lana Payne
As diplomatic efforts continue, Danielle Smith of Alberta remains committed to engaging with U.S. officials constructively:
“On behalf of Albertans, I will continue to engage in constructive dialogue and diplomacy with the incoming administration and elected federal and state officials from both parties.” – Danielle Smith
