Tariffs, DEI rollbacks, and energy shifts from US policies may disrupt Canadian workplaces
Recent policy changes announced by US President Donald Trump could have wide-ranging implications for Canadian employees, potentially influencing workplace practices and employment laws in Canada.
Howard Levitt, senior partner at Levitt LLP and author of The Law of Dismissal in Canada, outlined these effects in an opinion piece for Financial Post.
Levitt explained that tariffs imposed by either the US or Canada could lead to substantial employment dislocations. Depending on the extent of the tariffs, entire sectors of Canada’s economy could face significant risks.
Reduced consumer spending caused by financial strain would likely result in further business closures, compounding job losses.
Trump’s plans to increase US oil and gas production, lower energy prices, and boost exports could negatively affect Canada’s energy sector.
As Canada’s largest industry, the energy sector could suffer decreased revenue due to competition with lower US prices and reduced US imports. This could result in widespread job losses in the sector.
The scrapping of Joe Biden’s Green New Deal and Trump’s withdrawal from the Paris Climate Accords are expected to discourage Canadian companies from decarbonizing.
To stay competitive, Canada may be forced to abandon its carbon tax, emissions limits, environmental controls, and investments in electric vehicle manufacturing. Levitt warned that these changes could lead to further employment upheavals.
Trump mandated a full-time return to offices for US federal employees, which could influence the policies of Canadian subsidiaries of US companies. This shift might create a precedent for Canadian employers to call their employees back to workplaces.
Trump declared DEI policies “dangerous, demeaning and immoral,” citing their incompatibility with longstanding US civil rights laws.
An executive order placed federal DEI staff on paid leave, pending layoffs, and established a snitch line to report DEI programs under new names.
Federal funding was also cut for learning institutions mandating or supporting DEI practices.
Levitt noted that many Canadian companies have already reduced or eliminated DEI programs in recent months. Subsidiaries of US companies may follow suit to avoid sanctions.
A recent poll revealed that a majority of Canadians, including immigrants, oppose diversity quotas. This reflects a broader shift in Canadian recruitment and promotion practices, with merit becoming the sole focus.
Trump’s executive action defined only two sexes—male and female—at the federal level. Levitt stated that while this policy may not directly impact workplaces, it reflects a cultural shift that could influence workplace practices.
For example, pronouns in email signatures and name tags may disappear if Canada adopts a similar recognition policy.
The decline of wokeism, particularly regarding politically incorrect speech and micro-aggressions, is another notable development.
Levitt cited recent changes at Meta, where fact-checking was halted due to concerns over left-wing censorship. Public backlash against censorship and perceived bias has also been widespread.
Levitt referenced the Wall Street Journal, which reported that the #MeToo movement’s slogan has shifted from “believe women” to “hear women — and then verify.”
He highlighted the public outrage surrounding incidents involving Ivy League university leaders who failed to condemn genocidal calls against Jews. This shift in public sentiment reflects growing frustration with the use of DEI and censorship to suppress dissent or take revenge.
Levitt observed that Canadians are increasingly rejecting the divisiveness of wokeism. Employees have grown weary of being labelled “wrong” or “bad” for their beliefs, a sentiment that has caused workplace conflict in the past.
These changes, which began in the US, are now influencing Canadian workplaces, contributing to significant structural and cultural shifts.
Levitt concluded that Trump’s policies are likely to accelerate these transformations, reshaping employment practices and laws in Canada.
