Trump's new 50% tariffs could hit Canada's battered job market, experts warn

Canada's job market faces renewed pressure as U.S. President Donald Trump announced impending tariffs of 50% on numerous Canadian sectors. The measures, set to take effect next month, target key industries such as dairy, agriculture, alcohol, and motor vehicle manufacturing.

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If you look at the list of targeted items, alcohol products, wood products, certain apparel items, hockey sticks, other sporting goods, you just look at those industries in Canada, and yes, there is a risk to jobs.

Experts warn that these tariffs, which extend to a wide range of products including clothing and paper goods, could decrease demand for Canadian goods in the U.S. due to increased costs for American consumers. John Boscariol, a partner at McCarthy Tétrault LLP, noted the risk to jobs in these specific sectors, anticipating a continued trend of negative impacts as more industries are targeted.

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There is a bit of a delay in seeing the impact in terms of job loss, but unfortunately, as the Trump administration continues to pick off each of these sectors, I expect we’re going to see that trend continue.

Economists from major Canadian banks estimate that the affected sectors account for approximately 5% of Canada's total exports to the U.S., amounting to $30 billion worth of goods. Andrew DiCapua, principal economist at the Canadian Chamber of Commerce, projected that this could put around 100,000 jobs at risk of layoffs or reduced hours. "This is going to hit a number of different sectors, and if you’re making some of these products and you’re not competitive with a 50 per cent tariff, that’s going to put pressure on your operations," DiCapua stated.

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There is going to be an impact on the jobs market should these tariffs be implemented at this level for about five per cent [of U.S. exports from Canada], it’s still a sizable amount.