Trade Chaos Hits Hard: 40% of Businesses Freeze Hiring as Trump Tariffs Bite
New Bank of Canada data drops a bombshell: 40% of businesses are slashing hiring and investment plans as Trump’s tariff onslaught rocks the economy. Markets have been reeling since the U.S. slapped 25% tariffs on Canadian steel and aluminum imports this week, intensifying trade tensions.
Surveys from January 29 to February 28 reveal export-heavy industries are feeling the heat most. Nearly three-quarters of mining, oil, and gas workers fear for their jobs, alongside 60% in manufacturing. Even finance, real estate, agriculture, and forestry workers report unease, with nearly half on edge about worsening U.S.-Canada trade ties.
Bea Bruske, head of the Canadian Labour Congress, says workers are in a tailspin—some are even mulling home sales as layoffs loom. From Algoma Steel in Sault Ste. Marie to manufacturing hubs, “pockets of layoffs” are popping up, and U.S. orders are drying up. “People are terrified about their future,” Bruske warns, predicting a layoffs surge if tariffs persist.
Employers, too, are rattled, issuing unions early warnings of potential cuts. With online surveys lacking a margin of error, the Bank’s findings still signal a storm brewing for Canada’s workforce.