Canadian companies cut jobs as cross-border tariffs hit steel, auto, and consumer goods industries
The ongoing trade conflict between the United States and Canada has led to significant job losses across various Canadian industries.
Sectors including steel, automotive, and consumer goods have seen disruptions due to rising US tariffs, according to The Globe and Mail.
Companies have responded by cutting jobs, pausing operations, or shutting down entirely.
As per a SteelRadar report, Algoma Steel in Sault Ste. Marie, Ontario, laid off 24 workers, citing uncertainty tied to US tariffs on steel and aluminium products.
The broader Canadian steel and aluminium sectors have seen similar cutbacks, with industry leaders warning of further job losses if tariffs remain in place, according to US News & World Report.
Montreal-based Sheertex, known for its durable pantyhose, laid off 40 percent of its workforce.
The company cited US tariffs on Canadian exports and the removal of the de minimis exemption, which had previously allowed duty-free shipping for small parcels, as key factors.
As reported by Business Insider, Stellantis temporarily laid off about 4,500 Canadian workers, pausing production at several plants due to a 25 percent US tariff on imported vehicles and auto parts.
Other automotive manufacturers, including General Motors and F&P Mfg in Ontario, also scaled back operations, cutting shifts and idling output destined for the US.
According to Reuters, Volvo Group announced layoffs impacting between 550 and 800 workers across three US facilities, including Mack Trucks in Macungie, Pennsylvania, and plants in Virginia and Maryland.
The company blamed the cuts on decreased demand and production delays caused by tariffs on truck components and steel.
As reported by Manufacturing Dive, Cleveland-Cliffs laid off 1,200 workers at its Dearborn, Michigan steel mill and two iron ore sites in Minnesota.
The company cited increased raw material costs and reduced demand from automakers.
St. Louis-based Greater Than Games shut down all operations after the US imposed tariffs of up to 145 percent on Chinese imports.
As reported by Polygon, the company relied on Chinese manufacturing for affordability and quality, and the tariffs rendered its business model unsustainable.
According to Estée Lauder, the company expanded its global workforce reduction plan to cut up to 7,000 jobs.
The cosmetics firm linked the move to declining demand from China and concerns about reciprocal tariffs affecting global sales.
As per Canadian HR Reporter, around half of Canadian employers expect to reduce production or lay off workers in response to US tariffs.
Morningstar Canada reported that Canada added only 1,100 jobs in February 2025, down from 76,000 in January, attributing the decline to mounting fears over trade disruptions.
Economists now estimate the national unemployment rate could reach 7.9 percent by the end of 2025.
This projection includes a potential loss of 150,000 jobs if trade conditions worsen.
The tariff-driven downturn has introduced financial uncertainty for Canadian businesses.
Many are re-evaluating budgets, delaying expansions, or reducing staff as they brace for continued volatility in cross-border trade.
With political leaders continuing to debate trade policy, the real-time consequences of tariffs are being felt in Canadian workplaces.
