US tariffs on Canadian goods have had a ripple effect across several sectors, leading to layoffs and financial losses. In the fourth quarter of 2024, many companies that posted large losses as a result of these tariffs resorted to layoffs to reduce costs and keep their operations afloat.
One prominent company, Algoma Steel (Sault Ste. Marie, Ontario), announced the layoff of 24 workers due to the uncertainty created by the US tariffs on steel and aluminum products. Algoma reported a net loss of USD 66.5 million in the fourth quarter of 2024 and CEO Michael Garcia expressed concern that the company's financial health was under a “material and adverse impact”.
Another example was the Canadian Metalworking Group (Brossard, Quebec). The company announced 140 layoffs at its operations in Ontario and Quebec. The group has sub-brands such as Ivaco Rolling Mills, Sivaco and Infasco, and is experiencing the negative effects of trade disruptions due to low demand. To compensate, some projects have been halted or canceled.
Sheertex (Montreal, Quebec) was also hit hard. The company announced the temporary layoff of 40% of its workforce, affecting around 140 employees. The company's CEO, Katherine Homuth, stated that the trade wars and tariffs with the US have caused financial uncertainty for the company, and that this uncertainty has triggered the loss of its workforce. Sheertex exports 85% of its products to the US and the company is struggling to cope with changing trade policies.
South Shore Furniture (Ste-Croix, Quebec) has also undergone a major restructuring in response to US trade policies. The company laid off 97 employees at its headquarters in Quebec and 18 at its facilities in the Eastern Townships. As US retailers shifted their purchases to Asia, demand for Quebec-made furniture declined. This was one of the factors that influenced the company's decision to reduce its workforce.
South Shore Furniture (Ste-Croix, Quebec) has also undergone a major restructuring in response to US trade policies. The company laid off 97 employees at its headquarters in Quebec and 18 at its facilities in the Eastern Townships. As US retailers shifted their purchases to Asia, demand for Quebec-made furniture declined. This was one of the factors that influenced the company's decision to reduce its workforce.
The reason behind the increase in layoffs due to the trade war is that tariffs in particular have reduced companies' revenues. Labor expert Andrew Bratt noted that tariffs reduce revenues and companies are forced to cut costs quickly to cope. However, while the Canadian government's job-sharing program aims to prevent layoffs, many companies find the process too complex and time-consuming to implement effectively.
Overall, many companies in Canada are feeling the negative effects of the trade war with the US. Economic uncertainty, rising costs and reduced demand have resulted in workforce cuts and layoffs, forcing firms to take strategic steps to reduce costs and survive. This could have a wider impact on the Canadian economy and lead to similar challenges in other sectors.
Comments
No comment yet.