CFIB and Unifor, usually divided, unite in calling for urgent measures to counter new US trade barriers
The Trump administration’s decision to impose a 25 percent tariff on Canadian goods and a 10 percent tariff on energy imports has sparked an unusual consensus between business and labour leaders in Canada.
The Canadian Federation of Independent Business (CFIB) and Unifor, typically on opposite sides of economic debates, are both warning of serious consequences and demanding immediate government action.
The tariffs, according to CFIB President Dan Kelly, are a significant blow to the Canadian economy, particularly for small businesses.
“Many small businesses have already experienced higher costs, cancelled contracts/orders, and lower demand due to the ongoing threats,” Kelly stated, adding that now that tariffs have been imposed, these challenges are expected to escalate rapidly.
CFIB warned that further tariffs could follow, with steel and aluminum potentially facing new duties on March 12 and additional products targeted on April 2.
Unifor, Canada’s largest private-sector union, described the tariffs as an “economic call-to-arms.” National President Lana Payne said Trump had “fired the first shot in a full-on trade war,” misjudging “the resolve and unity of Canadians.”
She warned that the tariffs will raise consumer prices, eliminate jobs, and disrupt highly integrated manufacturing sectors, including auto, across both Canada and the US.
Payne stressed that the trade relationship with the US “forever changed” with these measures, calling for a shift in Canada’s trade strategy to build a more resilient economy.
Although CFIB and Unifor come from different perspectives, their concerns about the economic fallout align.
CFIB focuses on the burden tariffs place on small businesses, calling on the federal government to act immediately. The organization has urged Parliament to be recalled to ensure every dollar collected in tariffs is returned to affected businesses as quickly as possible.
CFIB also called for policy clarity, including halting the April 1 carbon tax increase, passing legislation to make carbon tax rebates tax-free, and increasing the lifetime capital gains exemption threshold to $1.25m.
Unifor’s response, while also demanding immediate action, is broader in scope.
The union is calling for a coordinated effort from all levels of government and industry to respond to ongoing tariff threats across key Canadian industries, including auto, steel, aluminum, wood products, and copper.
Payne emphasized that Canada must rethink its trade relationships, invest in domestic industries, and strengthen its economic foundations to counteract US trade policies.
Beyond the immediate response to tariffs, CFIB has been pushing for broader economic reforms to help Canadian businesses.
Last week, Nova Scotia Premier Tim Houston implemented a long-standing CFIB recommendation by removing internal trade barriers through mutual recognition of provincial regulations. Ontario Premier Doug Ford signalled he would take similar steps.
CFIB is now urging other provinces and territories to act quickly to enable true free trade within Canada, arguing that reducing interprovincial barriers is critical as external trade pressures mount.
As Canada marks five years since the start of the pandemic, CFIB underscored that Canadian businesses have already endured two major economic disruptions: the pandemic and now an emerging trade war with the country’s largest economic partner.
The federation called for collective support for local, independent businesses, emphasizing that uncertainty and inaction would only worsen the economic impact.
Despite their usual differences, CFIB and Unifor are united in their assessment that these tariffs pose a serious threat to Canada’s economy.
Whether focusing on small businesses or workers, both organizations agree that urgent government action is needed to mitigate the damage and chart a path forward.
