President Trump’s announcement that the US will apply a 10% tariff on Canadian energy products and 25% tariffs on all other imports from Canada has sent shockwaves across the Canadian economy. In a report issued in January, the Bank of Canada speculated that a trade war between Canada and the US would lead to a decline in Canada’s GDP during the first year by about 2.5%. The fact that this economic shock comes so closely after a significant rise in interest rates due to high inflation means that Canadian employers are in a precarious position.
This insight is intended to help guide employers in Canada with the employment law issues they may face due to the uncertainties arising from threatened or actual tariffs, the removal of US funding sources and other current events matters. This is not intended as a substitute for legal advice, but a supplement to it. Each employer will need to make its own decisions, having regard to such things as: (i) the constantly changing current events; (ii) the nature of the employer’s business; and (iii) the employer’s financial health. If you have any questions, please contact any member of Dentons’ Canadian Employment and Labour group.
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