Unifor says Canada must hit back hard as Trump escalates economic extortion

TORONTO, July 11, 2025 /CNW/ - Unifor is condemning U.S. President Donald Trump's latest threat to impose a 35% tariff on non-CUSMA compliant Canadian goods as a reckless act of economic extortion designed to strong-arm Canada into an unfair trade deal.

"There's only one answer to this extortion from the U.S. president: push back—hard," said Unifor National President Lana Payne. "Canada must use every bit of leverage we have. Workers are counting on our government to defend their jobs and industries. Concessions won't stop a bully, but collective strength will."

Lana Payne le poing levé à Windsor (Ontario) (CNW Group/Unifor)

The move, announced in a letter Trump posted on social media, marks the latest escalation in the ongoing trade war with the U.S.

Trump's ultimatum, set to take effect August 1, demands Canadian companies relocate production to the U.S. or face punishing tariffs. The threat comes as Prime Minister Mark Carney and Trump are engaged in negotiations to reach a trade deal by a newly announced August 1 deadline.

The 35% tariff threat is just the latest in a series of baseless and punitive actions. Trump has already imposed tariffs on Canadian autos, steel and aluminum, and is also promising a 50% tariff on copper.

"Trump's playbook is clear, implement and threaten sky-high tariffs to condition us into accepting a lower baseline tariff as the new normal. We must never fall for it," said Payne. "That's not negotiation—that's coercion. We will not settle for a future where Canadian jobs are held hostage to the U.S." 

With Canadian jobs and industries under attack, Canada must continue its pursuit of an agreement with the U.S. that is preconditioned on zero tariffs. Any U.S. proposal intended to solidify unjust tariffs must be roundly rejected.

The Canadian government must also consider a range of strategic responses to defend its national interest. Unifor is urging the federal government to invoke powers under the Foreign Extraterritorial Measures Act to penalize firms that relocate production outside of Canada, in response to the President's tariff policies, up to and including an import prohibition on those firms.

In the event a deal cannot be reached by August 1, Unifor is also urging the federal government to immediately undertake a national reserve strategy, with stockpiles of key inputs such as aluminum and critical minerals, among others, essential to Canadian sovereignty. 

For more information visit Unifor's Protect Canadian Jobs campaign website here.

Unifor is Canada's largest union in the private sector, representing 320,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future. 

SOURCE Unifor

For media inquiries or to arrange interviews please contact Unifor Communications Director Kathleen O'Keefe at [email protected] or by cell at [phone].