IAM Union Condemns Trump's 25% Tariffs on Canada: A Threat to Jobs and Economy

WASHINGTON, March 4, 2025 – Brian Bryant, International President of the 600,000-member IAM Union, and David Chartrand, IAM Canadian General Vice President, issued a joint statement regarding President Trump’s 25% tariffs on Canada:

“The International Association of Machinists and Aerospace Workers (IAM) Union strongly condemns the Trump administration’s reckless decision to impose a 25% tariff on all Canadian imports. This harmful action threatens jobs, raises prices, and undermines the long-standing economic partnership between the United States and Canada.

“The IAM has always supported trade policies that protect and grow jobs in both nations. But these tariffs are an unjustified attack on a trusted ally. Canada is not the enemy. Canada is committed to fair trade practices that support workers and communities. This decision will disrupt industries that rely on integrated supply chains, hurting workers on both sides of the border.

“The IAM represents 600,000 workers, including tens of thousands in aerospace, defense, and manufacturing—industries that depend on strong U.S.-Canada cooperation. These tariffs will destabilize those sectors, putting livelihoods and our nations’ economies at risk.

“As our union has said previously, tariffs should be used strategically to counter bad actors, like China, that manipulate markets and undermine fair trade. Targeting Canada with punitive tariffs is not only misguided, but dangerous. It weakens North American industry and puts working families in jeopardy.

“We urge President Trump to immediately reconsider these tariffs and pursue trade policies that strengthen, rather than weaken, the economic relationship between the United States and Canada.”

The International Association of Machinists and Aerospace Workers (IAM) is one of North America’s largest and most diverse industrial trade unions, representing approximately 600,000 active and retired members in the aerospace, defense, airlines, railroad, transit, healthcare, automotive, and other industries across the United States and Canada.

In response to the tariffs, Prime Minister Justin Trudeau called the U.S. action “very dumb” and vowed to “hit back hard” with retaliatory tariffs on $155 billion worth of American goods. The Canadian government also filed dispute resolution claims at the World Trade Organization and through the USMCA.

Retaliatory Tariffs by Canada on U.S. Goods

Economists warn that the tariffs will have the effect of depressing U.S. economic growth, contributing to a higher rate of inflation, and that these effects will be worse if the other countries retaliate in kind. The tariffs may also cause many businesses to reduce their planned investments, further hurting economies worldwide.

“The impact of imposing these tariffs,” said Marcus Noland, executive vice-president of the Peterson Institute for International Economics, “will have the effect of depressing U.S. economic growth, contributing to a higher rate of inflation, and those effects will be worse if the other countries retaliate in kind.”

Stock markets across the globe sank after Trump made it clear that tariffs on Mexico and Canada would go into effect as planned. Surveys indicate a decline in consumer confidence, an increase in inflation expectations, and growing concerns among U.S. businesses about supply chain disruptions.

Eswar Prasad, a Cornell University expert on trade policy, warned that Trump’s tariffs will have additional undesirable effects. “US exporters will face a particularly tough time,” he said. “They will have to compete with imports from countries that do not face tariffs, and they will have to deal with the higher costs of inputs that are subject to tariffs.”

In conclusion, the 25% tariffs on Canadian imports, imposed by President Trump, pose a significant threat to jobs, raise prices, and undermine the long-standing economic partnership between the United States and Canada. The IAM Union strongly condemns this reckless decision and urges President Trump to reconsider these tariffs and pursue trade policies that strengthen, rather than weaken, the economic relationship between the two nations.