Senior researcher at Canadian Labour Congress emphasizes a pro-worker approach to trade and commerce by buying and building Canadian
The growing threat of tariffs is setting the stage for a turbulent economic period and employers are being urged to take action to shield their businesses and employees from the potential fallout – by investing at home.
Elizabeth Kwan first gives a cautious warning as she asserted no sector will emerge unscathed if trade tensions escalate.
"I think that the situation right now is that there's going to be no real winners, whether you're in the public sector or in the private sector. Sooner or later, these measures are going to hit hard," the senior researcher at the Canadian Labour Congress, said.
While industries like automotive, steel, aluminium, and forestry will feel the immediate effects, the consequences will quickly ripple across entire communities. Additionally, with prices rising and supply chains under strain, economic pressure will extend far beyond manufacturing.
Although tariffs have now been paused for thirty days, should they take hold, many businesses will face hard choices. For instance, Kwan points to the “very integrated food, agricultural and agri-food system” Canada and the US shares, acknowledging that these sectors could be the most impacted.
Even dairy sectors, which have been a source of trade friction, could see disruption. However, Kwan believes there are ways to be proactive without resorting to mass layoffs.
"First of all, it's always made sense to unions to have a pro-worker approach to trade and commerce," she said, arguing that supply chains are powered by people, not just machinery.
She urged employers in all industries to take a collaborative approach with their workforce and explore measures like wage subsidies, work-sharing programs, and furloughs with maintained benefits to keep employees afloat.
"We have income supports for laid-off workers. But what we want to do is to not create structural change. It's hard to come back from that. What we want to do is try to preserve and keep people and businesses afloat as much as possible," she said.
To illustrate her point, Kwan pointed to the pandemic, which offered lessons on supporting employees during economic downturns.
"The difference is that we actually can do something about this," she said, noting that businesses and policymakers have a greater ability to respond this time around.
“We’re in a stronger place to act strongly to ensure that the future is still there. The future can be bright but it takes people coming together, working together and being pro Canadians.”
Kwan also emphasized that employers should focus on stability, both for their business and their workers because if they don’t move forward proactively with the intention of maintaining the business and workforce in a certain way, “you're just reacting to anything and everything that’s coming at you; it’s a very defensive way of dealing with the situation," she noted.
Beyond protecting workers, Kwan believes in keeping Canadian investments and people on home soil.
"Businesses are thinking of investing or expanding in the United States. Yes, that is exactly what President Trump wants but going back to an all-Canadian effort, the effort should be to keep the investments here," she said.
She makes it clear though that doesn’t include just buying in Canada but also producing in Canada.
"We've been asked to buy Canadian, which is great, but we can also do more to build Canadian, too. All those things are very, very possible," she said.
“We really do need to make sure that we're not ending up with hundreds of thousands of job losses because of these actions. If that happens, it's not just about job losses. It’s [then] about losing communities. Losing those two things means that there is no place for a business to go,” she added.
Kwan is quick to emphasize that the proposed tariff measures are ultimately going to hurt Americans and Canadians alike.
“We’ve tried to appease. We've tried diplomacy, and that has not gotten us very far with President Trump and his administration. It’s time for us to band together, stand together and stand up for Canada,” asserted Kwan.
“It doesn't matter whether you're a worker, employer… just stand up and say, ‘No, we will not be bullied.’”
