{"id":1625,"date":"2026-08-24T22:38:43","date_gmt":"2026-08-24T22:38:43","guid":{"rendered":"https:\/\/smartmovinghome.com\/?p=1625"},"modified":"2026-08-24T22:38:43","modified_gmt":"2026-08-24T22:38:43","slug":"workers-stand-to-lose-the-most-in-trumps-new-tariff-war-on-canada","status":"publish","type":"post","link":"https:\/\/smartmovinghome.com\/?p=1625","title":{"rendered":"Workers Stand to Lose the Most in Trump\u2019s New Tariff War on Canada"},"content":{"rendered":"
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The U.S.-Canada trade war is deepening after talks collapsed without a deal on Friday. Canadian Prime Minister Mark Carney accused the Trump administration of issuing demands that would compromise Canada\u2019s sovereignty and undermine key industries. On Saturday, the United States slapped 50% tariffs on around $20 billion worth of imports from Canada, and Carney announced retaliatory tariffs on $20 billion of U.S. products set to go into effect on September 8.<\/p>\n

\u201cCanadians are sick of this,\u201d says Avi Lewis, leader of Canada\u2019s progressive New Democratic Party. He says that while the Liberal government has correctly identified voters\u2019 anger, its policies still favor international investors and the fossil fuel industry rather than truly \u201cTrump-proofing\u201d the economy.<\/p>\n

We also speak with trade expert Lori Wallach, who says the U.S.-Canada trade war is pitting Trump\u2019s vision of \u201coligarchic trade grift\u201d against a dead neoliberal consensus represented by Carney. The two countries have balanced trade, and Wallach says the United States is being far more lenient with China despite Beijing\u2019s much more serious threat to the U.S. and wider global economy through its \u201cbeggar-thy-neighbor\u201d policies.<\/p>\n

TRANSCRIPT<\/h2>\n

This is a rush transcript. Copy may not be in its final form.<\/em><\/p>\n

ANJALI KAMAT:<\/strong> The U.S.-Canada trade war is deepening after talks collapsed without a deal on Friday. Canadian Prime Minister Mark Carney accused the Trump administration of issuing demands that would compromise Canada\u2019s sovereignty and undermine key industries. On Saturday, Trump slapped 50% tariffs on around $20 billion worth of imports from Canada. Carney then announced retaliatory tariffs on $20 billion of U.S. products beginning September 8th. Carney spoke on Saturday.<\/p>\n

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PRIME MINISTER MARK CARNEY:<\/strong> We\u2019ve been under no illusions. We recognized from the start that America has changed. Early last year, in this room, I observed that the decadeslong process of steadily increasing integration between our economies was over. Our government understood before many that America would transform all of its commercial relationships, that it would put a series of tariffs on its closest allies and use economic integration as a weapon. We recognized that sometimes its signature was written in pencil. \u2026<\/p>\n

The gap between partnership and competitor, unfortunately, has remained too wide in recent days. So, last evening, I instructed our negotiators to return to Ottawa. We cannot accept what they\u2019ve offered, and we will not give what they\u2019ve asked.<\/p>\n<\/blockquote>\n

ANJALI KAMAT:<\/strong> Canadian Prime Minister Mark Carney took questions from reporters after his address.<\/p>\n

\n

REPORTER:<\/strong> Why does it feel like today Mark Carney is going to war, trade war, the tone?<\/p>\n

PRIME MINISTER MARK CARNEY:<\/strong> Because we were attacked. Like, you\u2019re at war when you get attacked. We got attacked. The U.S. put 50%. We waited until the United States decided to actually implement these so-called 338 tariffs. That\u2019s fine.<\/p>\n<\/blockquote>\n

ANJALI KAMAT:<\/strong> President Trump responded online, writing, quote, \u201cCanada wants the benefits of being a State, without being one!!! They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!\u201d end-quote.<\/p>\n

U.S. Transportation Secretary Sean Duffy appeared Sunday on Fox News<\/em>.<\/p>\n

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TRANSPORTATION SECRETARY SEAN DUFFY:<\/strong> We\u2019re great trading partners, right? But \u2014 but \u2014 but Canada gets the benefit of trading with the U.S. more \u2014 way more than the U.S. gets the benefit of trading with Canada. It\u2019s a country that doesn\u2019t have a military. \u2026<\/p>\n

We want fairness for the American worker, and some of our best friends are \u2014 are the worst offenders, that treat us the worst. And the fact that we provide their security for them and they take advantage of us, I think President Trump was the first one to go, \u201cYou know what? That\u2019s not the kind of relationship that friends should have.\u201d And so, the president\u2019s calling them out. I think you\u2019re going to see Mark Carney come to the table very, very quickly, because it\u2019s going to be devastating for his country.<\/p>\n<\/blockquote>\n

ANJALI KAMAT:<\/strong> On Sunday, the editorial page of The Wall Street Journal<\/em> ran an editorial headlined \u201cThe Dumbest Trade War Revisited: Trump\u2019s decision to escalate a tariff brawl with Canada makes no economic or political sense.\u201d<\/p>\n

The tariffs come just 10 weeks before the midterms. Economists predict battleground states, including Maine, Michigan, Ohio and Alaska, could face disproportionate economic pain from the tariffs.<\/p>\n

For more on this, we\u2019re joined now by two guests. Lori Wallach is director of the Rethink Trade program at the American Economic Liberties Project and founder and former director of Public Citizen\u2019s Global Trade Watch. Her recent piece for Foreign Affairs<\/em> is headlined \u201cThe Right Way to Balance Trade: What Comes After the Neoliberal Order.\u201d She\u2019s joining us in Wisconsin. And in Toronto is Avi Lewis, the leader of Canada\u2019s New Democratic Party, the NDP. He\u2019s also a longtime Canadian journalist, documentary filmmaker and activist.<\/p>\n

We welcome you both to Democracy Now!<\/em> Avi Lewis, let\u2019s begin with you. Talk about what these talks were supposed to be about and why they broke down.<\/p>\n

AVI LEWIS:<\/strong> Well, good morning, Anjali. Hello, Lori. It\u2019s great to be back on Democracy Now!<\/em><\/p>\n

This has followed a sickeningly familiar pattern with Trump threatening and setting a deadline for devastating \u2014 I think the Washington \u2014 The Wall Street Journal<\/em> \u2014 rarely agree with The Wall Street Journal<\/em>, but this is incredibly dumb. It\u2019s also incredibly damaging and dangerous. It\u2019s going to hurt Canadian workers. It\u2019s going to hurt American workers. It\u2019s completely unnecessary. And at the last minute, after negotiations are going on under the threat of these massive tariffs, suddenly Howard Lutnick arrives with a whole set of new demands at the 11th hour. This is the pattern, and we\u2019ve seen it over and over again.<\/p>\n

Read more Bessent Unveils Iran Sanctions Regime He Admits Could \u201cBlow Up\u201d Global Economy<\/a><\/p>\n

In this case, Prime Minister Carney read the room correctly. Canadians are sick of this. We\u2019re already under punishing tariffs in many of our most important industrial sectors, from automaking to forestry to steel and others, and we simply are not in the mood to grant more concessions. And so the prime minister walked away from the table.<\/p>\n

But the truth is, and the wider context of this is, that, unfortunately, Canada has already made a whole bunch of unilateral concessions, and so we\u2019re in a weakened position just in the context of the short-term trade deal. The prime minister gave up the digital services tax without anything to compensate it. That\u2019s seven \u2014 modest for Big Tech. That\u2019s a modest tax of about $7 billion a year. It was the only real solid tax we had on the Big Tech billionaire \u2014 I guess we have to say \u201ctrillionaire\u201d \u2014 class behind Trump. And that was at the beginning of this process, something like a year ago.<\/p>\n

We\u2019re also \u2014 while Canadians are united in this feeling that we\u2019ve gone \u2014 we\u2019ve given enough to Trump\u2019s demands, and we can\u2019t concede further without securing protection for our own industries and economy, we\u2019re not all in this together. We have to remember, and Lori and I have been fighting free trade deals between Canada and the United States since the 1980s, because the integration of the corporate classes of our two economies has been achieved at the expense of working-class people in both of our countries, and to the incredible, staggering enrichment of the wealthiest people and corporations in our economy. We are not all in this together when the six big Canadian banks made $70 billion last year. They are not directly affected by tariffs, and they continue to make higher and higher profits every single year. We are not all in this together when the oil and gas sector in Canada, which is majority owned by U.S. corporations, made \u2014 is on track to make up to $150 billion in wartime profits this year alone because of the immoral, senseless, illegal attack on Iran by the United States and Israel, $150 billion in profits for this industry that is not affected, that has been spared all of the tariffs, because, of course, the United States needs a huge amount of Canadian oil each and every day. So, we are united as Canadians in rejecting more unilateral concessions; we are not all in this together in terms of who\u2019s going to be hurt.<\/p>\n

And we need to build an independent Canadian economy. Mark Carney has had well over a year to get started on that project. He has announced big plans, like buying the oil industry a new pipeline for $40, $50, $60 billion of public money, like major projects that suspend Indigenous rights and environmental protections in favor of largely foreign corporations coming in and buying more of our resources. He\u2019s having an investment summit on September 12th in Toronto to invite BlackRock and Blackstone and JPMorgan. And the prime minister has mused about selling our airports and our ports and privatizing more of our economy to the benefit of foreign investors.<\/p>\n

So, we need a made-in-Canada plan to develop our autonomy and double down on the things that unite us as Canadians, like our embattled healthcare system, which is also being privatized these days. But we\u2019re not on track to do that. This is a fork-in-the-road moment for Canada, and we have a completely different progressive vision to offer Canadians, that would help Canadian workers, defend Canadian workers in this crisis, and also get back to work building a truly independent Canadian economy, that would benefit American workers, as well. As we\u2019ll see in this next period, everybody is going to be hurt by this.<\/p>\n

ANJALI KAMAT:<\/strong> Avi, these new tariffs affect about 5% of the goods, of Canadian goods that are imported by the U.S. They target about $20 billion worth of Canadian goods. Who is actually hurt by these tariffs? Who are the workers, what are the industries in Canada that would be hurt by these tariffs?<\/p>\n

AVI LEWIS:<\/strong> Yeah, I mean, this is \u2014 we already have tariffs on the automobile sector of 25%, a major integrated sector between Canada, the U.S. and Mexico. And this deal was only to achieve a lowering of 25% to 15% on auto tariffs. That makes the auto industry in Canada uncompetitive, which is why Lana Payne, the head of Unifor, the largest private-sector union in Canada, said months and months ago that no deal is better than a bad deal. But this is an extension beyond steel and forestry and auto to tariff a lot of consumer goods, everything from furniture makers to apparel to rubber and plastic products. This would bite deeper into the Canadian economy across the economy, a lot of smaller and medium-sized businesses in every region of the country.<\/p>\n

But again, it\u2019s not all equally apportioned. It\u2019s always certain sectors and certain regions which are hurt the worst. In this case, my province of British Columbia would be most affected by this latest round of tariffs. Ontario and Quebec, the largest economic provinces in our country, would also be severely, severely damaged by this. And don\u2019t forget that it\u2019s Americans who pay these tariffs, and it\u2019s American workers who are also affected. It\u2019s the cost-of-living emergency, in Canada and the United States, where food prices, where rent, and the cost of putting a roof over your head, and all of the costs of living are going up and up and up in a period where people are really suffering. So, you know, there are corporate players who will make out fine, but it is the working-class people of our continent who are going to be hurt. This may not be the huge proportion of Canadian exports to the United States, in one of the biggest trading relationships on planet Earth between our two countries, but this is a deepening of an attack on Canada and on the American working class, which has been going on since Trump was elected for the second time.<\/p>\n

And here in Canada, we need to do something big about it. We\u2019ve got plenty of fantastic proposals about how we could actually protect ourselves. In the short term, we have an unemployment insurance program in Canada that only covers one out of three workers that pay into it, and it only gives you a little more than half of your previous wage or salary when you get laid off. It\u2019s hard to qualify for. It takes too long to kick in. We need immediate reforms to our employment insurance system to cover people with more support faster and to cover way more workers in our economy. Those are sort of the short-term things.<\/p>\n

We need emergency assistance for the sectors that are worst hit by this \u2014 again, manufacturing, wood products, apparel and furniture and others. But we also need a bigger plan to actually Trump-proof the Canadian economy. We could do things \u2014 when we are making major investments of public dollars in oil pipelines, we could use that money instead to build an east-west electricity grid, double down on renewable energy, which is energy independence forever, because the inputs for renewable energy are always free, unlike oil and gas and coal. We could build an east-west electricity grid to trade renewable energy across our country with battery storage and the cheapest-installed energy, solar and wind, on planet Earth today. The world is moving away from fossil fuels in this period, and Canada is being left behind because we are \u2014 continue, under the Mark Carney government, to tie our fate to massive military expenditures, massive fossil fuel investments, and all-in on AI, which, despite the prime minister\u2019s excellent words about Canadian independence from the United States, mirror the Trump agenda. And unfortunately, under the surface, we\u2019re seeing an expansion of decades of integration of the corporate class between Canada and the United States. That is not a plan to make anybody safe.<\/p>\n

ANJALI KAMAT:<\/strong> I want to bring Lori Wallach into the conversation, director of the Rethink Trade program at the American Economic Liberties Project and founder and former director of Public Citizen\u2019s Global Trade Watch. Lori, building off of what Avi was talking about in terms of U.S. consumers who are hurting, I just wanted to read a couple quotes from politicians from border states. Here we\u2019ve got Minnesota Senator Amy Klobuchar saying on X, \u201cCanada is Minnesota\u2019s #1 trading partner. Minnesotans are paying for Trump\u2019s chaos.\u201d Republican Senator of Maine Susan Collins said the new tariffs would, quote, \u201cincrease costs for Maine families, as most businesses will have no choice but to pass on the tariffs to their customers through higher prices.\u201d Your response to what\u2019s happened with the collapse of the trade talks?<\/p>\n

LORI WALLACH:<\/strong> So, it is the case that this situation is \u2014 again, I don\u2019t typically agree with The Wall Street Journal<\/em>, but \u2014 perhaps the most stupid trade fight in history, in that, yes, if you buy \u2014 if you are a purchaser in the U.S. of some of these goods \u2014 for instance, hockey sticks, but not pucks \u2014 I mean, go figure \u2014 you will see higher prices.<\/p>\n

But let\u2019s step back at the whole situation. And Avi\u2019s exactly right. You have at this moment this fight between two visions, neither of which are good for working people or for the environment. There is a way to do trade that benefits the majority of people, small businesses, farmers. And in Trump, you have an oligarch-first trade policy. He got elected saying he\u2019d help working people. In fact, what he\u2019s done is make exceptions in his tariffs. Whatever you think about tariffs at this point, 55% of imports into the U.S. have been excluded from tariffs, because Trump gives free entry for his buddies in Big Tech, in chemicals, etc. So, we have a situation where between the disruption of supply chains like the U.S. and Canada, which have been not under the right rules, but united in a way that literally it\u2019s disruptive to U.S. manufacturing when there\u2019s disruption in Canadian manufacturing \u2014 you have a situation where the U.S. now is down 75,000 manufacturing jobs since Trump came down, came back to office. We have 30% decrease right now in factory construction since Trump came back the second time, because the chaos, the tariff chaos and malpractice, is so severe.<\/p>\n

But the problem is, in Mark Carney, there is sort of the high priest of neoliberalism, a guy who has been going around the world trying to sell the Trans-Pacific Partnership, NAFTA on steroids, extra goodies for Big Tech and for Big Pharma, ways to attack Canada\u2019s wonderful pharmaceutical pricing system that don\u2019t even exist in the old NAFTA, as the replacement for the World Trade Organization, as if that\u2019s not bad enough. And there is something that is neither Trump\u2019s oligarchic trade grift nor the neoliberalism that Carney has in mind, that actually could harness the benefits of trade, but neither of these guys is thinking about that. Rather, they\u2019re having this kind of personal fight, and it\u2019s political. So, Trump can\u2019t bear the thought someone is standing up to him and not just steamrolling him. Folks in Canada are getting tariffed because they had the temerity to stand up and put tariffs in retaliation to Trump unilaterally tariffing them. That is the basis for these tariffs. And the notion that, politically \u2014 the U.S., Canada and Mexico right now have the only duty-free trade at all under Trump two. Canada and Mexico still have majority duty-free access. Underlying all of this is: Will we renegotiate, in a way that works for people and the planet. the NAFTA replacement, the U.S.-Mexico-Canada Agreement? And there, I think, are people with a good vision \u2014 Avi, for instance; in the U.S., many Democrats in Congress \u2014 of how you could fix that agreement and have a lift-up agreement. But instead, with this fight, we\u2019re just heading in the worst direction possible.<\/p>\n

ANJALI KAMAT:<\/strong> And, Lori, how have Trump\u2019s economic policies vis-\u00e0-vis Canada differed from those, say, with China? And this especially at a time where we\u2019re coming up on what the Trump administration is calling \u201ceconomic D-Day,\u201d threatening to sanction any country trading with Iran?<\/p>\n

LORI WALLACH:<\/strong> So, this is part of the lunacy of the situation. The United States not only has many decades of putting the economies together, as Avi said, not on behalf of working people, but, for instance, the aerospace industry, literally, if you hit tariffs on metal products that are part of the aerospace industry, which is happening, you hurt jobs in the U.S., instead of thinking about how do we make this smoother. And the U.S. and Canada have relatively balanced trade. If you take the crude oil sent to the U.S. to be processed and employ U.S. workers out of the formula, U.S. and Canada have balanced trade. And then tariffs go to 50%, and some products are higher, lower. But targeting Canada is the big problem, when it\u2019s not. Rather, it\u2019s a partner and has balanced trade, versus in China.<\/p>\n

China is the source of a ginormous trade deficit with the U.S., but not exclusively, with the world. And it\u2019s because of particular policies that Canada is not implementing, that China uses regularly, often called \u201cbeggar thy neighbor,\u201d where you take policies suppressing wages, no independent unions, or no safety net, social safety net. So, you basically suppress consumption. People save a ton, because they\u2019re responsible for everything on their own. They have no support from the government. Or you subsidize at enormous rates. All of those interventions mean China is exporting an enormous amount. And it\u2019s not just hitting the U.S. At this point, countries that were the emerging trade countries, countries like Mexico, like India, like Brazil, are going into trade deficits and are being deindustrialized because of this behavior in China. Trump has cut the tariffs. He feels some friendship with the authoritarian leader of China. And so, he and Premier Xi have had many a happy meeting where they cut tariffs with China, the cause of the trade deficit. And here we have 50% tariffs on Canada. It\u2019s \u2014 it is, I would say, something that is more like middle school or childhood playground battles between Carney and Trump, as compared to anything that makes economic sense or geopolitical sense.<\/p>\n

Read more WaPo Ordered to Rehire Karen Attiah, Who Was Fired for Charlie Kirk Comments<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The US put 50 percent tariffs on around $20 billion worth of imports from Canada, which announced retaliatory tariffs.<\/p>\n","protected":false},"author":1,"featured_media":1624,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1625","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nWorkers Stand to Lose the Most in Trump\u2019s New Tariff War on Canada - Smart Moving Home<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/smartmovinghome.com\/?p=1625\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Workers Stand to Lose the Most in Trump\u2019s New Tariff War on Canada - Smart Moving Home\" \/>\n<meta property=\"og:description\" content=\"The US put 50 percent tariffs on around $20 billion worth of imports from Canada, which announced retaliatory tariffs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/smartmovinghome.com\/?p=1625\" \/>\n<meta property=\"og:site_name\" content=\"Smart Moving Home\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-24T22:38:43+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"17 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/smartmovinghome.com\\\/?p=1625#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/smartmovinghome.com\\\/?p=1625\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/smartmovinghome.com\\\/#\\\/schema\\\/person\\\/ec0d70042821fd684a174c8d0e8becfa\"},\"headline\":\"Workers Stand to Lose the Most in Trump\u2019s New Tariff War on Canada\",\"datePublished\":\"2026-08-24T22:38:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/smartmovinghome.com\\\/?p=1625\"},\"wordCount\":3503,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/smartmovinghome.com\\\/?p=1625#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/smartmovinghome.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/c2fbc766ae692d8f7faa8788275a1ae2.jpg\",\"articleSection\":[\"Interesting\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/smartmovinghome.com\\\/?p=1625#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/smartmovinghome.com\\\/?p=1625\",\"url\":\"https:\\\/\\\/smartmovinghome.com\\\/?p=1625\",\"name\":\"Workers Stand to Lose the Most in Trump\u2019s New Tariff War on Canada - 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