The tariff war has just begun, and Canada's large companies are already struggling! The wave of layoffs is coming fast and fierce, with thousands of workers facing the loss of their jobs, making life difficult for many.
Trump's recent tariff storm has caught Canadian companies that rely on cross-border trade off guard. Many businesses have been forced to suspend production or carry out mass layoffs.
These companies seem to have been thrown into the eye of the storm, with layoffs, production halts, and downsizing becoming their only means of self-rescue. In recent weeks, several major Canadian companies have announced layoffs, leaving behind stories that are both lamentable and helpless.
Taking the automotive industry as an example, the first "hard-hit area" is General Motors' CAMI assembly plant in Ingersoll, Ontario.
Due to slow sales of BrightDrop electric delivery vans, General Motors announced on Friday that the factory will halt production from next month until October, with capacity halved after resuming operations, and nearly 500 workers will be indefinitely unemployed.
In 2024, BrightDrop sold only 427 units in Canada and 1,529 units in the U.S., far below expectations. The union criticized General Motors for ignoring the value of its workers, while Mayor Petrie promised assistance for laid-off employees.
Next is the automotive giant Stellantis, which was stunned by the tariffs.
This global automaker announced that due to the new round of high tariffs imposed by the U.S. on Canadian imports of automobiles and parts, the assembly plant in Windsor, Ontario, will suspend production for two weeks starting April 7th and 14th.
The plant mainly produces popular models such as Chrysler Pacifica, Voyager, and Dodge Charger Daytona. This sudden shutdown directly affects the livelihoods of 3,200 workers, causing many families to face financial difficulties.
Not only Canadian workers, but about 900 workers at five associated factories in the U.S. are also temporarily unemployed due to production disruptions. The scope of the tariff war exceeds people's imagination.
Stellantis stated that if the situation can be alleviated in time, the Windsor plant is expected to resume production on April 21st.
However, the automotive manufacturing sector is just the tip of the iceberg hit by the tariff storm. Furniture manufacturer Prepac located in Delta, Greater Vancouver, also failed to escape this disaster.
Recently, Prepac announced layoffs of more than 170 people and decided to relocate its production lines entirely to North Carolina in the United States. This round of layoffs marks the end of Prepac's manufacturing history in Canada over the past half-century.
Nick Bozikis, CEO of Prepac, emphasized that the decision to relocate the factory was made long before this tariff event. However, the Canadian private sector union Unifor strongly refuted this, accusing the company of using the tariff incident as an excuse to shift production to the U.S.
Lana Payne, president of the union, bluntly criticized: "This move by Prepac and its private equity shareholders is pure greed, using the tariff issue as an excuse to relocate production to the U.S." Factory workers have been notified that they are expected to be laid off by May of this year.
Meanwhile, the technology sector is also mired in the quagmire of the tariff war. Recently, automation robotics company Eascan Automatic in Winnipeg also announced layoffs.
This company engaged in industrial automation equipment research and development stated that since the announcement of the tariff policy, many customers have had to suspend or even cancel previously planned automation projects, leading to a sharp decrease in business volume and deteriorating operating conditions.
The company revealed that nearly one-third of its employees were laid off in late February, including not only a large number of technical personnel but also administrative staff affected. Additionally, the skyrocketing cost of aluminum and other raw materials has become a common challenge for both enterprises and clients.
According to the company, the price of aluminum is expected to rise by nearly 50%. This drastic cost fluctuation has led many companies to delay major investments, causing suffering throughout the upstream and downstream supply chains.
The introduction of the tariff policy was originally a means for the Trump administration to protect the interests of U.S. domestic enterprises. However, in reality, it has brought heavy blows to companies in Canada and other parts of North America.
Now, economic uncertainty caused by tariff issues has severely impacted the stability and sustainable development of the entire North American industrial chain. Affected companies have had to temporarily slow down or even halt production plans, resulting in many employees losing their stable sources of income.
Many analysts pointed out that the Trump administration's attempt to protect U.S. domestic job positions through tariffs did not achieve the expected results but instead harmed the interests of numerous companies, including those in the U.S. The supply chains between Canada and the U.S. are highly integrated; any damage to either side could trigger widespread repercussions.
Facing the sudden unemployment dilemma, affected Canadian employees and their families are in a state of anxiety. They can only hope that governments on both sides of the border will quickly return to the negotiating table and reach an agreement as soon as possible to resolve the tariff conflict.
However, the difficulties remain before them. How long will this trade storm last? How many more companies and employees will be involved? Currently, these questions remain unanswered.
In the future, Canadian businesses and workers are destined to continue navigating this arduous economic storm. How to weather the crisis remains the biggest question on everyone's mind.
Original article: https://www.toutiao.com/article/7492625763758326306/
Disclaimer: This article solely represents the author's personal views. Feel free to express your opinions by clicking the "Agree/Disagree" buttons below.