Big Ideas to Help Build a Resilient Economy in Canada

 

Building Canada’s economy means tabling big, bold ideas. There is so much we can do to create a more resilient economy and protect Canadian sovereignty.

 

Here’s where we start.

  • Retaliatory tariffs are not enough. Canada must penalize any firm that moves jobs or operations from Canada because of U.S. tariff policies.

    Here’s why:

    Relocating productive assets from Canada to the United States, in response to illegal tariffs, imperils the Canadian economy and infringes on Canadian sovereignty.

    Canada already has laws that prohibit firms from complying with foreign rules that adversely affect Canada’s interests.

    The federal government must consider all statutory powers to protect jobs, including disincentivizing the “offshoring” of Canadian production, imposing heavy penalties on firms that comply with illegal and unjust U.S. orders, and prohibiting goods previously made in Canada from re-entering the country from the United States or elsewhere.

Unifor recommends a strong response to Trump’s tariff threats. Together, we can protect good Canadian jobs, the economy, and public services.

National President Lana Payne is bringing these demands to the Prime Minister:

  • Targeted and strategic tariff retaliation 
  • Enhanced income supports for workers 
  • Manage exports and build up processing of our national resources 
  • ‘Buy Canadian’ public procurement policies  
  • Emergency relief to prevent layoffs and sustain operations 

Take these demands to your MP and local federal candidates to ensure that this government and the next understand how important it is to listen to workers.

  • If U.S. tariffs are imposed on Canadian exports, the federal government must issue retaliatory tariffs on U.S. imports immediately. 

    Canada must match the total value of U.S. tariffs on Canadian goods with Canadian tariffs on U.S. goods, but shouldn’t be bound to impose like-for-like tariffs on individual products . The dollar-for-dollar approach will give Canada greater flexibility to apply tariffs to targeted goods at levels deemed appropriate.

  • The federal government should deploy resources to mitigate job losses resulting from U.S. tariffs, including an expanded Canadian Work-Share program, bridge subsidies for early retirement, and income supplements for training, among others.

    Canada must prepare for a potential rise in unemployment and provide additional income supports to workers affected by the tariffs, like measures implemented during the COVID-19 pandemic.

    These supports should include improved access to Employment Insurance benefits or other special income assistance programs, with more accessible qualifying rules and enhanced income support to offset a greater share of lost income — particularly for workers in high-wage, trade-exposed workplaces. Additionally, benefits should be extended in duration, with allowances for workers to earn supplementary income or undertake education while receiving support.

  • The federal government, in consultation with provinces, must consider ways to manage the outflow of rare earth metals, critical minerals, wood products, oil and gas, aluminum, uranium and potash, among others. We can also process these resources before exporting them.  

    Unifor has long called on federal and provincial governments to exercise greater public discretion over the export of natural resources, manage foreign ownership over resources, and elevate Canada’s position in the value chain.  
     
    Bolstering Canada’s capacity to process, refine, and transform these inputs into higher-value goods (like paper instead of logs) will not only rebuild production capacity but also create good jobs, diversify exports, and reduce dependence on foreign nations like the United States.

  • Access to U.S. federal and state procurement is heavily restricted. “Buy America” and “Buy American” rules effectively exclude Canadian suppliers from bidding on contracts. Over time, these rules have become more onerous, directly contributing to job losses in Canada, including among Unifor members. By contrast, Canada maintains a mostly open and unfettered procurement market for U.S. suppliers. 
     
    U.S.-based suppliers should be subject to the same restrictions here that Canada faces in the States. When it comes to public purchasing, Canadian companies should come first.  
     
    Public purchasing across all levels of government in Canada generates significant economic activity, totaling an estimated $300 billion per year. This represents a major opportunity to reinvest strategically in the domestic economy, supporting sector-specific industrial strategies that foster Canadian innovation and develop necessary skills and production capacities.

  • U.S. import tariffs will have varying effects on Canadian employers depending on their U.S. export dependence, financial positions, customer profiles, and more. For those most at risk, a key government objective should be to sustain Canadian operations where possible and mitigate the risk of layoffs caused by workplace closures or production slowdowns.

    Export-dependent firms demonstrating financial distress should have access to preferential loan guarantees to maintain operations.

    Additionally, the federal government should consider deploying a program similar to the Canada Emergency Wage Subsidy program (CEWS) for eligible firms in trade-dependent sectors and communities to keep Canadians working. This would temporarily subsidize wages and help keep workers on payroll. Revenue generated through retaliatory tariffs could partially fund these and other support measures.