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US-Canada trade tariffs are driving job losses and production cuts
The US imposed a 50% levy on about C$28 billion of Canadian goods on top of tariffs on steel, aluminum, lumber and autos, while Canada retaliated with “dollar-for-dollar” measures.
The US and Canada are still far from resolving their tariff dispute, with the latest round of US duties hitting Canadian sectors and prompting counter-tariffs from Ottawa, according to BBC Business. In the US, levies have targeted Canada’s key industries including steel, aluminum, lumber and automobiles, and last week the US added a 50% tariff on about C$28 billion of Canadian goods. Canada has responded with counter-tariffs described as “dollar-for-dollar” and “strategic” retaliation aimed at matching US measures. The impact is uneven across the two countries. In Canada, provinces most exposed to the US sectoral tariffs, including Ontario, have faced auto and steel-related fallout, with several auto parts and assembly plants announcing layoffs and production cuts, and Ontario estimated to have lost tens of thousands of manufacturing jobs since early 2025. Quebec, a major producer of metals, has also seen declines, with its metal exports falling 36% between February 2025 and 2026 and employment in the sector down 3.6%, based on data released in July. The BBC also notes the US economy is larger, but that some US states are more exposed to Canada’s retaliation, with tariffs levied on C$28 billion worth of US goods covering categories from steel to items such as cosmetics and toilet paper as of 8 September.