Tariffs Threaten Key Industries Across Canadian Provinces
As trade tensions escalate between Canada, the U.S., and China, premiers across the country are warning of economic fallout from mounting tariffs — with every province’s most vital industries now under pressure.
U.S. President Donald Trump’s 10% tariff hike announcement and China’s retaliatory taxes on Canadian goods have left Canadian exporters facing uncertainty and shrinking markets.
Here’s how the damage breaks down, province by province.
British Columbia – Lumber and forestry
B.C. Premier David Eby has accused Ottawa of ignoring the province’s forestry crisis. Lumber tariffs now total 45% after Trump’s latest hike.
“Steelworkers in Ontario get national attention — our forestry workers deserve the same,” said Eby.
Wood products are B.C.’s second-largest export after energy, supporting over 100,000 jobs.
Alberta – Oil and gas
Tariffs haven’t directly hit Alberta’s energy exports yet, but trade slowdowns have reduced global oil demand and prices.
Provincial revenues were $1.4 billion below projections this year due to falling crude prices and a stronger loonie.
“Lower global growth from U.S. trade actions is hurting Alberta’s energy sector,” said economist Trevor Tombe.
Saskatchewan – Canola and pork
China’s 100% tariff on canola oil and meal, and 75.8% on canola seed, are devastating Saskatchewan farmers. The province produces half of Canada’s canola exports.
Premier Scott Moe urged Ottawa to lift its tariff on Chinese EVs in exchange for relief.
“Get this deal done on behalf of 200,000 workers,” Moe posted on X.
China’s 25% tariff on pork is also hitting Saskatchewan’s $1-billion livestock industry hard.
Manitoba – Canola and pork
Premier Wab Kinew said retaliatory Chinese tariffs are hammering rural Manitoba.
Canola generated nearly $2 billion in 2024 — now facing steep price drops. One major pork producer reported a $19-million annual loss.
“Thousands of farmers’ livelihoods are at stake,” Kinew wrote in an open letter to PM Mark Carney.
Ontario – Auto manufacturing
Ontario’s $11.6-billion auto industry is under fire from Trump’s new 25% tariff on imported medium- and heavy-duty trucks, set to begin Nov. 1.
General Motors has already halted production of its electric van, while Stellantis moved a Jeep line to Illinois.
Premier Doug Ford refuses to lift Canada’s tariffs on Chinese EVs, citing domestic manufacturing protection.
“There’s no damn way we should drop tariffs on China,” Ford told the Empire Club of Canada.
Ontario has invested billions in EV subsidies and tax credits to secure homegrown production.
Quebec – Aluminum and aerospace
Manufacturing accounts for 80% of Quebec’s exports, with aluminum second only to aerospace.
A Scotiabank report predicts a 1.4% GDP drop in Quebec and Ontario by the end of 2026 due to tariff exposure.
The aluminum sector — 10% of Quebec’s export base — is particularly vulnerable to U.S. trade barriers.
New Brunswick – Lumber
New Brunswick’s lumber industry adds $15 billion to its GDP each year. Premier Susan Holt says increased U.S. tariffs will have a “real and negative impact” on local jobs.
“We need urgent federal action to protect our forestry communities,” Holt said.
Prince Edward Island – Seafood
China’s March 2025 tariffs on Canadian seafood imports have shaken P.E.I.’s $377-million seafood industry.
Processing plants have cut hours and laid off hundreds of temporary foreign workers, according to the P.E.I. Seafood Processors Association.
Nova Scotia – Seafood exports
Nova Scotia exported $1.5 billion in seafood in 2024, 10% of which went to China. Those exports are now under tariffs, threatening one of the province’s largest employers.
Newfoundland and Labrador – Fisheries
Nearly 9% of Newfoundland and Labrador’s exports — primarily seafood — are now subject to Chinese tariffs, according to an RBC report.
The province’s fishing sector, already battling high fuel costs and market fluctuations, faces mounting uncertainty.
Big picture
With U.S. tariffs squeezing Central Canada’s manufacturing core and Chinese retaliation slamming Prairie agriculture and Atlantic fisheries, Canada’s trade strategy is under intense strain.
Economists warn that the next federal budget will need to address sector-specific relief — or risk long-term damage to Canada’s export economy.
