American tariffs have reshaped Canada’s manufacturing sector, but labour-market impacts have not been evenly shared across workers.

The United States imposed tariffs on Canadian steel, aluminum, automobiles and auto parts as part of a broader protectionist push under Donald Trump’s administration. Canada’s government responded with its own counter-tariffs and trade measures, but disruptions to the industry were already underway by that point.

Manufacturing is a major source of employment for both immigrant and Canadian-born workers. It includes everything from automotive and aerospace parts to food processing and steel products, and it contributes roughly 10 per cent of Canada’s GDP.

Manufacturing is particularly vulnerable to U.S. tariffs because of its deep integration with cross-border supply chains. More than 60 per cent of Canada’s manufacturing sector has substantial trade exposure to the U.S., making it the primary channel through which tariffs affect the Canadian economy.

As firms adjusted to rising costs and trade uncertainty, immigrant and Canadian-born workers experienced different forms of employment risk at different points in 2025.

A recent report shows that between January and September 2025, Canada’s manufacturing sector experienced lower production, fewer jobs and higher prices.

After momentum earlier in the year, manufacturing jobs fell sharply in the spring, with the largest consecutive job losses occurring in April, when 30,600 jobs were lost, and May, when a further 12,200 jobs........

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