U.S. President Donald Trump’s sudden imposition of a 35% tariff on certain Canadian exports is expected to deal a significant blow to several major Canadian industries, sparking economic uncertainty and raising concerns over job losses.
According to experts and government officials, the sectors most at risk include:
- Automotive
- Steel
- Aluminum
- Lumber
- Pharmaceuticals
- Copper
While most Canadian goods that comply with the Canada-United States-Mexico Agreement (CUSMA) remain exempt, the new tariffs target products not covered under the agreement. RBC Economics estimates that roughly 86% of Canada’s exports to the U.S. will retain duty-free access—assuming they meet strict North American content rules.
However, York University professor emeritus Daniel Drache warns that even with CUSMA in place, Trump’s repeated tariff actions have exposed the fragility of relying heavily on U.S. trade. “For the people working in those industries, this has an immediate impact… thousands of jobs are at stake,” Drache said, calling the move a “shakedown” lacking enforceability or predictability.
Drache also emphasized that Canada’s longstanding focus on north-south trade with the U.S. has left the country vulnerable, with weak internal trade infrastructure across provinces. “We are waiting for the big projects that Prime Minister Carney announced to actually get underway,” he said, criticizing a lack of action behind the announcements.
Prime Minister Mark Carney, responding to the tariff hike, reiterated his government’s commitment to CUSMA and called on Canadians to strengthen domestic supply chains. “We will be our own best customer,” he posted on social media, while acknowledging the tariff’s impact on key sectors.
Canada’s federal and provincial governments are now being urged to reduce internal trade barriers, support affected workers, and expedite investments in cross-country trade and manufacturing capacity. As trade tensions with the U.S. continue to simmer, the long-term solution may lie in reshaping Canada’s economic self-reliance.
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