Canada Imposes New Tariffs and Reforms to Protect Workers from Unfair Competition

Ottawa – The federal government has announced sweeping measures aimed at safeguarding Canadian jobs, boosting wages, and promoting innovation in key sectors of the economy. These initiatives, led by Deputy Prime Minister and Minister of Finance Chrystia Freeland, are designed to protect Canadian workers from unfair competition, particularly from China, and stimulate job creation in growing fields such as artificial intelligence (AI).

One of the headline measures announced today is the immediate imposition of a 25% tariff on certain steel and aluminum products imported from China. This move comes in response to China’s trade practices, which have been criticized for oversupply, overcapacity, and a lack of stringent environmental and labour standards. By implementing these tariffs, the federal government aims to level the playing field for Canadian industries at risk of being undercut by Chinese competition. Freeland highlighted that the tariffs, which align with actions taken by key trading partners, will also prevent trade diversion into Canada.

“Protecting and creating jobs for Canadian workers, and helping them earn higher wages, are at the heart of our economic plan,” Freeland stated. She emphasized that the government is focused on ensuring fair competition for Canadian workers while also supporting businesses during this transition period. To ease the adjustment, businesses can apply for tariff relief under certain conditions before November 8, 2024.

Starting today, we’re imposing a 25% tariff on Chinese steel and aluminum imports. This will level the playing field for Canadian workers whose job security is being put at risk by China’s unfair, intentional, and state-directed trade practices.

— Chrystia Freeland (@cafreeland) October 22, 2024

In another major development, Minister of Employment Randy Boissonnault announced reforms to the Temporary Foreign Worker (TFW) Program to address concerns that some employers have been using the program to hire foreign workers at wages lower than what would be paid to Canadians. This practice has been blamed for depressing wage growth and reducing job opportunities for Canadians.

Starting on November 8, 2024, wages in the high-wage stream of the TFW Program must exceed the median provincial wage by 20%, with increases ranging from $5 to $8 per hour. This change is intended to incentivize employers to hire Canadian workers first, while ensuring wage growth is not suppressed. Additionally, beginning on October 28, 2024, stringent data verification processes will be introduced to prevent fraudulent job offers and protect the integrity of the program.

Boissonnault stressed that these reforms aim to protect both Canadian workers and temporary foreign workers, who can be vulnerable to exploitation under the current system.

The government also announced new funding to secure Canada’s competitive edge in the burgeoning AI sector. Under the $200 million Regional Artificial Intelligence Initiative, AI startups and small businesses in critical sectors like agriculture, clean technology, and manufacturing will receive support to bring new technologies to market. This funding is part of a broader $2.4 billion AI package designed to foster job creation and innovation. According to government data, AI-related jobs in Canada have grown by nearly one third over the past year, with many positions offering wages well above the national average.

The economic plan unveiled today is part of the government’s broader strategy to protect Canadian workers from unfair trade practices, promote wage growth, and foster innovation. Freeland and Boissonnault both underscored that these measures will help Canada’s economy remain competitive and ensure that workers across the country have access to good-paying jobs.

As Canada faces growing global competition, particularly from China, the government’s latest actions reflect its commitment to protecting Canadian industries while also laying the groundwork for the economy of tomorrow.