Since Feb. 1, 2025, Canada has been plunged into a major trade war, triggered by U.S. President Donald Trump, who at the time imposed a 25% tariff on all Canadian exports and a 10% tariff on energy products, critical minerals and aluminum.
After a 30-day reprieve, these tariffs came into effect on March 4, then were partially suspended on March 6 for products complying with the Canada-U.S.-Mexico Agreement (CUSMA).
On March 12, Trump renewed tensions by imposing a 25% surtax on all U.S. steel and aluminum imports, with no exemptions for Canada. On April 3, 25% tariffs were further applied to automobiles, followed on May 3 by equivalent tariffs on non- CUSMA-compliant auto parts.
Further investigations are underway in the U.S. to consider tariffs on softwood lumber, semiconductors, pharmaceuticals, copper and dairy products.
On May 30, Trump then announced his administration would double tariffs on steel and aluminum to 50% beginning the following week. These measures are still in force at the time of writing.
These measures threaten thousands of jobs and destabilize the deeply integrated supply chains between the two countries. This is not the first time Canada has faced such a threat. In 2018, similar tariffs were imposed by the same president but lifted in 2019 with the conclusion of the CUSMA. The difference today is the far greater scale and scope of the trade war.
Direct impact on workers
The consequences were immediate. More than 20,000 USW members work in the steel and aluminum sectors and are directly exposed. Already, several layoffs have been reported, while work-sharing agreements have been negotiated in a number of workplaces to minimize job losses. The effects are also being felt in the forestry, automobile and manufacturing sectors.
The tariffs are increasing economic uncertainty and many corporations in Canada have suspended their investments. Meanwhile, price rises are affecting everyday consumer goods, hurting families on both sides of the border.
An urgent and resilient response from the union
As soon as the first announcements were made, the USW set up an issue-management team to monitor developments, keep directors briefed, talk to governments and co-ordinate actions with the international union.
The message is clear: Canada is not the problem. These tariffs are a direct attack on workers, their jobs and the communities that depend on them.
The union has made clear demands. Thanks to the lobbying and pressure from other organizations, the federal Work-Sharing Program has been expanded, allowing employers to temporarily reduce work hours while avoiding layoffs. The Steelworkers are also demanding in-depth reform of Employment Insurance (EI), including increased coverage, extended benefits and the creation of a lower eligibility threshold nationwide. A wage subsidy conditional on job guarantees is also called for to protect incomes during this crisis.
Building a Canadian industrial strategy
This crisis highlights a structural vulnerability. The USW calls for a robust industrial strategy to reduce Canada’s dependence on U.S. trade. Priority must be given to steel, aluminum, wood and materials manufactured in Canada in all government-funded projects. Public money must be used to support Canadian jobs. The union is also calling for a tax credit to encourage the procurement of Canadian-manufactured goods, as well as the creation of strategic reserves of critical minerals to stabilize demand and secure supply chains.
An essential international union co-ordination
In this context of uncertainty, union solidarity is essential. Canadian Steelworkers are actively collaborating with our American counterparts to put pressure on policymakers. At the USW International Convention in April, a resolution to this effect was unanimously adopted by the 3,000 delegates gathered in Las Vegas. The message is clear: workers’ unity knows no borders.
An opportunity for transformation
As brutal as it is, this trade war can become an opportunity for transformation. It highlights the need to build an economy that is more resilient, more fair and less dependent on the political hazards of our trading partners. The United Steelworkers remains mobilized to defend workers, propose real solutions and build a sustainable industrial future based on solidarity and economic sovereignty.
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