What will Trump's tariffs cost Canadians?

When asked about the economic impact of Trump’s tariff threat, the Department of Finance said they are ‘trying to figure out as we go,’ prompting Conservative MPs to sound the alarm.

Trudeau’s failing government does not know how many Canadians will lose their jobs should Trump’s tariff war become reality next month. 

President-elect Donald Trump intends to sign an Executive Order on January 20, where Canada will pay “a very big price” should they not address their porous borders to his satisfaction. 

When asked about the impact, the Department of Finance told a parliamentary committee they are “trying to figure out as we go,” prompting Conservative MPs to sound the alarm.

During a Wednesday hearing of the Commons public accounts committee, Conservative MP Michelle Rempel Garner inquired as to why the finance department was not prepared. 

Department Officials indicate they are “certainly” working on a number of likely scenarios, reported Blacklock’s.

“We are trying to figure out as we go,” testified Chris Forbes, deputy finance minister. “We have done some work in this area,” he said.

77% of Canadian exports, worth $592.7 billion, went to the U.S. alone last year. A 25% tariff on all exports would likely cost the Canadian economy tens of billions of dollars a year.

“Have you forecasted how many jobs would be lost?” asked MP Rempel Garner. “We don’t have final numbers I could share,” replied Forbes. “We are working both with businesses and provinces in our own models to determine impact.”

MP Rempel Garner proceeded to get testy with Forbes as a disagreement arose on whether the appropriate economic analysis was complete.

“We’re a month away and there’s no plan or economic analysis of that impact complete yet?” she asked. “I would say there is [an] economic analysis that has been done,” he replied.

“Who is in charge of that?” continued Rempel Garner. “Officials report to the cabinet,” replied Forbes. “I really hope you guys get on that for the sake of this country,” she added.

A survey of 300 manufacturers found that nearly half (48%) are considering layoffs in response to the proposed tariffs, according to the Canadian Manufacturers and Exporters (CME).

Another 49% may shift production to the U.S. if the tariffs are implemented, reported the Epoch Times.

“Tariffs will endanger nearly $600 billion in exports to our largest trading partner, two-thirds of which are manufactured goods,” Dennis Darby, the CME president and CEO, said in a press release. 

Darby called for an “urgent” and “coordinated response” from governments to protect manufacturing businesses, workers, and families. Failure to do so “will be devastating for our economy,” he said.

Cabinet members earlier told reporters they took Trump’s threat seriously. “We are going to defend Canadian industry, Canadian workers,” then-Industry Minister François-Philippe Champagne said on November 26. 

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Alex Dhaliwal

Calgary Based Journalist

Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.

COMMENTS

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  • Bernhard Jatzeck
    commented 2024-12-20 19:50:11 -0500
    There was a joke circulating in this country some 40 years ago: Pierre Trudeau must have really loved the unemployed because he created so many of them.
  • Bruce Atchison
    commented 2024-12-20 18:23:44 -0500
    I’m we, who always suffer from Trudeau’s blunders, will soon find out how many of our jobs are lost. Politicians don’t care about our woes. They’ll survive whereas more Canadians will be homeless or living in their parent’s basements. This is one of Trudeau’s worst crimes. Hard-working citizens can’t afford groceries or housing anymore.