Hundreds of Canadian workers, primarily in the steel and aluminum industry, are facing layoffs due to tariffs imposed by US President Donald Trump. According to major unions and companies, the situation is expected to worsen if the tariffs remain in place for an extended period. Economists warn that the longer these policies persist, the broader their impact on Canada’s economy and labor market.
Concern over immediate layoffs
Trump’s steel and aluminum tariffs, implemented on March 12, have already resulted in significant job losses. Marty Warren, National Director of the United Steelworkers, the largest private-sector union in North America, reported that about 200 members have lost their jobs. “With the full-blown tariffs coming in on April 2 … it’ll probably affect 100,000 of our members,” added Warren. Ontario-based Canada Metal Processing Group announced a workforce reduction of 140 employees in February, citing the anticipated impact of the tariffs. The cuts include permanent and temporary layoffs, work-sharing arrangements, retirements, and a hiring freeze.
Ripple effect across the industry
Canada is the largest supplier of steel to the US, making the tariffs particularly impactful. Algoma Steel, based in Ontario, has laid off 27 workers, with CEO Michael Garcia indicating that more layoffs may follow if the company cannot secure new Canadian customers. Marty Warren predicts that with the full implementation of tariffs on April 2, up to 100,000 union members could be affected.
Scott Noseworthy, a shredder operator at Canada Metal Processing Group’s Ivaco plant, described the uncertainty workers face. With a young daughter at home, the unpredictability of having work from week to week has taken a toll. “It’s hectic: You’re not sure whether or not you’re going to have work one week to the next,” he said.
Canadian government response
The Canadian government has introduced measures to support affected workers, including earlier access to employment insurance and a multibillion-dollar aid program. However, advocates argue that more comprehensive changes to employment insurance are needed, including longer access periods and minimum weekly payments. Economist Armine Yalnizyan suggested that pilot projects could be implemented during the election campaign when Parliament is not in session.
Deena Ladd, Executive Director of the Workers’ Action Centre, emphasised the ongoing uncertainty. “Things are changing every day. That uncertainty is tough for employers and businesses, but it’s even more difficult for workers,” she said. The Canadian government has committed to monitoring the situation and providing additional support as needed.
(With Reuters inputs)
