A warning from Canada's largest private sector union that this week's 25 per cent tariffs on steel and aluminium will devastate industry, including the auto sector.
Unifor National President Lana Payne says Tuesday's tariffs, combined with reciprocal tariffs expected early next month, will hurt Canadian and American workers.
U.S. President Donald Trump has said he wants to grow his country's manufacturing sector by forcing companies to move their operations to the United States. Still, Payne said there's a better way to do it without harming the economy, industry, and workers.
"The auto industry imports in North America imports about 5 million vehicles a year from companies that don't manufacture in the United States, Canada or Mexico. That represents a lot of jobs," she said. "Why penalize those companies and those workers? Why not look at a way to bring more of that manufacturing to the United States."
Payne said the tariffs undermine the agreement reached with the Trump Administration in 2019 to end tariffs on Canadian steel and aluminum. She said Canada has lived up to its end of the deal, and the U.S. knows it.
The risk is the auto industry could permanently shut down.
"They will have to pay more for steel and aluminum, so the prices go up, and in the end, that may mean you sell fewer vehicles," said Payne. "As a result of that, you produce less and that has a direct impact on jobs."
"These tariffs on steel and aluminum, combined with tariffs on the industry itself, will result in an inability for this industry to operate in the way that it needs to," she added. "This industry could come to a grinding halt all across North America in a matter of days."
However, Payne cautions the auto industry won't be alone. Other industries, like aerospace, will also suffer.
Payne has consulted the federal government on ways to protect workers. She said there are non-tariff measures Ottawa and the provinces could take, but it also needs to offer employees support during this time.
"What is on the table right now isn't enough," she said. "The Employment Insurance system is not a program that can support workers in the way they need to be supported. We also have to look at supports for industries."
"We've had an auto industry in this country for over 100 years," she continued. "These are not Donald Trump's jobs to steal. We have an auto footprint for a very good reason. Because we buy cars in Canada, and as a result, we should build them."