Tariffs pause offers relief but falls short of real certainty: Unions

‘Canada must protect Canadian jobs and industrial capacity’

Tariffs pause offers relief but falls short of real certainty: Unions

The United Steelworkers union (USW) is calling on the federal government to secure a trade deal that protects Canadian jobs and industrial capacity.

"The pause on another round of 50% tariffs is welcome news for Canadian workers," USW National Director Marty Warren said in a statement, responding to the postponement of a further round of 50% U.S. tariffs on Canadian goods.

"The progress reported in negotiations is encouraging, but important work clearly remains to be done."

USW said existing tariffs are still hurting several sectors central to the Canadian economy. Warren said current tariffs are harming Canadian steel, aluminum, copper, forestry, automotive and other industries, and that the outcome of the broader Canada-U.S. trade negotiations "remains critical for workers across the country."

Canada temporarily avoided 50% U.S. tariffs on approximately $28 billion worth of goods Wednesday after U.S. President Donald Trump announced a three-day pause on the levies, following a period of intense negotiations as the two countries raced to finalize a deal.

If imposed, the tariffs could cost Canada about 50,000 jobs, according to a previous report.

U.S. President Donald Trump posted this statement on Truth Social: “I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL! The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave! Thank you for your attention to this matter. President DONALD J. TRUMP.”

USW sets conditions for a deal

USW outlined clear expectations for negotiators. Warren said the union's "test for those negotiations remains straightforward: Canada must protect Canadian jobs and industrial capacity, secure meaningful reductions in U.S. tariffs and give workers and industries the certainty they need to invest and grow in Canada."

The union also cautioned against accepting an agreement it considers unfavourable to Canadian workers. "Canada should keep negotiating from a position of strength," Warren said. "No deal is better than a bad deal that sacrifices Canadian workers, jobs or key industries." Warren added that Canada needs to build up domestic economic resilience regardless of how the talks conclude, saying the country "must intensify its efforts to strengthen our economy and build our domestic industrial capacity."

USW characterized the tariff pause as a temporary opportunity rather than a resolution. 

"This pause provides some breathing room," Warren said. "Canada must use it to keep pushing for an outcome that protects workers, strengthens Canadian industries and builds a more resilient economy."

In a separate statement, Canadian Chamber of Commerce President and CEO Candace Laing said the delay on tariffs offers relief but falls short of real certainty. 

"Businesses may not be closing up shop with this news, but an extension doesn't bring the certainty that a signed interim deal would,” she said in a statement posted on the group’s website. We know that stability is in short supply and businesses will take any ounce they can get. This limbo state is not anyone's preferred outcome — time is of the essence." 

She added that the negotiating teams deserve credit for their urgency and should keep pushing toward a deal.

Dan Kelly, president and CEO of the Canadian Federation of Independent Business, offered a more optimistic take on social media, saying that if the U.S. drops the 50% tariff threat and approves the Keystone XL pipeline, those would be "two big moves in the right direction and will provide needed short term relief to many small firms,’ according to a report from Construct Connect.

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