IAM Union Warns of Job Losses and Price Increases Amid U.S. Tariffs on Canada
AInvestSaturday, Feb 1, 2025 8:20 pm ET
2min read

WASHINGTON, Feb. 1, 2025 — The International Association of Machinists and Aerospace Workers (IAM) has issued a stark warning regarding the potential impacts of President Donald Trump's decision to impose a 25% tariff on all Canadian goods imported into the United States. The union, which represents hundreds of thousands of members in the aerospace, defense, and other manufacturing sectors in both countries, has expressed concern about the potential job losses, increased prices, and other negative impacts that the tariffs could bring.



The IAM's statement, released by International President Brian Bryant and Canadian General Vice President David Chartrand, highlights the importance of both nations working together to combat illegal trade practices by countries such as China. The union supports the use of tariffs as a tool to address these concerns but warns that the current tariffs on Canadian goods could have severe consequences for both the U.S. and Canada.



The IAM represents many members who work at companies that rely heavily on integrated supply chains between the U.S. and Canada. The 25% tariffs on Canadian goods imported to the U.S. could result in job losses, increased prices, and a variety of other negative impacts. The union urges the Trump administration to reconsider this action, as it could reverse the longstanding partnership between the two nations and ultimately lead to job losses for both countries.



The IAM is a strong advocate of trade policy that helps protect and grow jobs in the United States and Canada. The union supports tariffs when used properly to combat illegal trade practices by countries such as China. However, the IAM warns that the current tariffs on Canadian goods could have unintended consequences and urges both nations to work together to address these concerns.





The IAM's warning comes as the U.S. and Canada continue to grapple with the potential impacts of the tariffs. The U.S. imposed the tariffs in response to Canada's retaliatory tariffs on U.S. goods, which were implemented in response to the U.S. tariffs on steel and aluminum. The IAM's statement highlights the importance of both nations working together to address these concerns and avoid further disruptions to the integrated supply chains between the two countries.





Chart: Potential Job Losses and Price Increases Due to U.S. Tariffs on Canada

- X-axis: Time (Q1 2025 to Q4 2026)

- Y-axis: Job Losses (in thousands) and Price Increases (in percentage)

- Line 1: Job Losses in the U.S.

- Line 2: Job Losses in Canada

- Line 3: Price Increases in the U.S.

- Line 4: Price Increases in Canada



The IAM's warning serves as a reminder of the potential consequences of the tariffs on both the U.S. and Canada. The union urges both nations to work together to address these concerns and avoid further disruptions to the integrated supply chains between the two countries. By collaborating on alternative trade policies and enforcement actions, the U.S. and Canada can address illegal trade practices by countries such as China without resorting to tariffs on Canadian goods.

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