50 Percent of Canadian Manufacturers Considering Layoffs if Trump Tariffs Enacted

Motorists drive through the Peace Bridge port of entry in Buffalo, N.Y., on May 23, 2023. The Canadian Press/Cole Burston

Nearly half of Canadian manufacturers may freeze hiring or lay off workers if U.S. President-elect Donald Trump imposes 25 percent tariffs on all Canadian goods.

A survey of more than 300 manufacturers between Dec. 11 and 18 indicated that 48 percent will consider these moves if the tariffs are implemented, according to data released Dec. 19 by Canadian Manufacturers and Exporters (CME).

Additionally, 46 percent will consider postponing or cancelling planned capital investments, while 49 percent will consider shifting some production to the United States.

“Tariffs will endanger nearly $600 billion in exports to our largest trading partner, two-thirds of which are manufactured goods,” CME president and CEO Dennis Darby said in a press release. “These findings show why we need an urgent and coordinated response from governments to protect manufacturing businesses, workers, and families.”

Failure to do so “will be devastating for our economy,” Darby added.

Trump threatened 25 percent tariffs against Canada, as well as Mexico, in a series of Truth Social posts on Nov. 25, saying the tariffs will come into effect unless the two countries address the issues of illegal immigration and illicit drugs entering the United States through their mutual borders.

In response, Ottawa in its fall economic statement, tabled Dec. 16, included $1.3 billion over six years to bolster Canada-U.S. border security.

The federal government announced its plan for the funding the next day. Part of the funding will increase support to law enforcement agencies by adding artificial intelligence and imaging tools to help detect and intercept fentanyl and its precursor chemicals before they enter Canada.

The Canada Border Services Agency will train and deploy new canine teams to help intercept illegal drugs. Health Canada will establish a Canadian Drug Profiling Centre to support 2,000 investigations annually, and will also expand capacity at regional labs.

The investment will also provide new tools for the RCMP, including a new Aerial Intelligence Task Force comprised of helicopters, drones, and mobile surveillance towers. Counter-drone technology will support RCMP officers and provide 24/7 surveillance between ports of entry.

In addition, Canada will increase information and intelligence sharing with the United States and other international partners and between Canada’s own various levels of government and law enforcement. This will also enhance operational coordination with U.S. officials, allowing for more effective disruption of organized crime groups that are facilitating illegal border crossings.