By CCU President Gregory Ball
As president of the largest associations of independent, democratic unions in Canada, I am writing this message from the very deepest sense of urgency and conviction I can possibly convey, to address one of the greatest challenges faced by Canadian workers in years.
US President Donald Trump has implemented a 25 percent tariff on almost all Canadian goods entering the United States. The policy is a direct threat to Canadian working families, our economy and sovereignty. It reflects a larger, deeply troubling trend in protectionism that will irreparably harm both sides of the border, but in particular, Canadian workers, and thousands of members of the Confederation of Canadian Unions.
In Trump’s vision, blanket tariffs are a tool of economic war, meant to penalize foreign nations by raising the price of their goods. Trump has taken his bizarre, threatening nationalism even further, repeatedly needling Canada to become the 51st US state.
On the surface, this might seem like a way to protect American industries, but at its core, tariffs are a direct tax on consumers and workers, especially in a highly interconnected global economy. This tax falls squarely on the shoulders of the working class—those same workers whom Trump claims to champion with his populist rhetoric.
The effects in Canada will be widespread: massive job losses, lower wages, and greater inequality. Leading economists argue that Trump’s tariffs will destroy one million direct jobs, with many more spillover job losses in connected industries, and a loss of 3.25% of GDP. Workers in these vulnerable sectors will feel the effects of Trump’s policies most acutely, but in reality, no Canadian is entirely immune from the economic damage these tariffs will cause.
Rightfully so, Prime Minister Trudeau and several provincial premiers and officials of all political parties have retaliated against Trump’s tariffs with their own set of penalties and tariffs on US goods entering Canada. Trudeau has even discussed the “nuclear option” of placing an embargo on energy and oil exports to the US, which currently represents 60% of the crude oil and 52% of the total petroleum the US imports every year.
A Meaningless Trade War Based on Myths
Canada is the largest market in the world for US exports: over $440 billion (US) in 2023. Trump argues that the US suffers from a “$200 billion” annual trade deficit with Canada, which amounts to the US “subsidizing Canada.” This, of course, is demonstrably false, and yet another example of Trump’s compulsive lying. The actual US trade deficit with Canada in 2024 was $33 billion (US), down from $62 billion (US) in 2022, and constitutes only 4% of the total American annual trade deficit.
In fact, the Canada-US trade relationship is among the most balanced of any major American trading partners. The US exports 92 cents to Canada for every dollar they purchase (immeasurably more than it does to the rest of the world). And this bilateral trade deficit with Canada that Trump believes is so damaging is fully offset by Canadian loans to the US. In reality, Canadian investors are “subsidizing” the US to continue consuming more than it produces.
Yet Trump’s trade war will mean rising prices for goods produced in the US or made with American materials. Canadian manufacturers who rely on American imports, from raw materials to finished goods, will face increased costs that will inevitably be passed down the supply chain.
This will not only inflate the prices of goods for Canadian consumers, but also make it harder for Canadian workers in sectors like manufacturing and agriculture to compete in the global market. In particular, industries such as automotive, steel, and agriculture, which depend on cross-border trade, are poised to take the hardest hit.
Canadian beef and dairy to the forestry and energy sectors – which include thousands of CCU members in unions like the Public and Private Workers of Canada (PPWC) and the Canadian Union of Skilled Workers (CUSW) – stand to lose billions of dollars if access to US markets is further restricted. This would destabilize regional economies, cost Canadian jobs, and diminish Canada’s economic growth.
Undermining Canadian Sovereignty
At the heart of Trump’s tariffs is an insidious attempt to weaken Canadian sovereignty. It’s not just an economic issue. It’s about asserting control over the countries that form part of the international economic order. By slapping tariffs on Canadian goods, Trump sends a clear message that Canada, despite being a longstanding ally of the United States, is an adversary in his protectionist paranoia.
For Canada to thrive, we need to pursue a diversified economy—one that isn’t overly dependent on any single nation, including the US. But Trump’s tariffs perpetuate a system where Canadian businesses are deeply vulnerable to the whims of American policy. This fragility aligns us too closely to the economic health of our southern neighbor. A nation that cannot manage its trade policies independently of another is not truly free.
Yet during the past four decades, the Canadian government has largely failed to assert its independence in the face of these economic pressures. Rather than fortifying domestic industries and strengthening economic ties with other parts of the world, Canada has continued to prioritize its trade relationship with the US. This short-sighted approach makes us far too vulnerable to US political volatility. Trump’s tariffs are not only a demonstration of economic bullying—they are part of a broader strategy to maintain American dominance over the global economic system.
Trump’s tariffs are the epitome of shortsighted nationalism. While he may claim to protect American jobs, the reality is that the US economy is deeply interconnected with Canada’s. By weakening our economy, Trump undermines and ultimately harms US workers as well. As Canadian wages stagnate, demand for American goods will decrease, and American workers will bear the brunt of a weakened trading partner.
Taking Action for Canadian Workers – and Independence
The tariffs are not just a challenge to Canada’s economic prosperity—they are an affront to the values of cooperation, solidarity, and mutual respect that should underpin the relationship between our two nations.
The Confederation of Canadian Unions (CCU) believes that the response to these tariffs must be both immediate and sustained. We must unite as a nation to oppose these protectionist measures and demand the Canadian government take a firm stand against any attempt to harm our workers and economy.
Canada should not bow to American economic bullying. It’s time for our government to recognize the threat posed by Trump’s policies and take long-term actions to protect Canadian workers. This means diversifying trade relationships, bolstering domestic industries, and fostering economic independence from the United States. Canada can no longer afford to remain a passive player in an economy dominated by the whims of a foreign leader.
The federal and provincial governments must provide emergency aid to export industries while they retool and reorient their marketing and exports to other countries. They should also expand access to employment insurance and other support systems to help workers survive job losses and economic disruption.
Taking a step back and looking at the bigger picture, many economists have argued that Canada is too dependent on trade even with the international economy as a whole. How about a “Made in Canada” strategy, where we diversify our economy towards Canadians doing things for Canadians?
There’s a mountain of work to be done in that regard: a massive affordable housing program, home care, infrastructure, public transportation, public child care, a fully universal public pharmacare programs (with domestic research and production facilities), renewable energy, and yes, Canadian-made manufacturing where we build high end, high value, high tech products right here within our nation’s borders.
We have the most educated and talented workforce in the world. What are we waiting for?
For the sake of working people and Canadian independence, we must stand together and reject Trump’s protectionist tariffs at all costs. Trump’s “America First” agenda means Canadian workers come last.
The Confederation of Canadian Unions, along with our allies in the labour movement and working people throughout our land, will fight this policy from the very depths of our being, and continue the struggle for an economy that works for everyone, not just the wealthy few. The future of our country and the livelihoods of Canadian working families are at stake. This will be our defining moment.
