Carney Warns of Job Losses and Recession Risk Amid Trump’s New Tariffs
Liberal Leader Mark Carney is warning Canadians of “tough days ahead” as the economic impact of former U.S. President Donald Trump’s latest tariffs begins to take shape.
Speaking during a campaign stop in Oakville, Ont.—a community home to major automotive operations including a Ford manufacturing plant—Carney said the newly announced U.S. tariffs are expected to put pressure on Canadian employment, particularly in the auto sector.
Trump’s Wednesday announcement introduced a new wave of tariffs on imports from dozens of countries and included a 25% levy on all foreign-made vehicles. Carney said the move brought “greater certainty” about the former president’s trade intentions, but also highlighted the ripple effect on Canada’s economy.
“We can expect pressure on employment in this economy,” Carney told reporters. “There are some tough days ahead. I’m not going to sugarcoat it.”
He noted the federal government’s recent adjustments to employment insurance eligibility—including waiving the one-week waiting period for those who lose jobs due to tariffs—will offer some relief. Still, Carney emphasized that no policy can fully shield Canadians from the economic fallout.
Carney also reiterated his party’s pledge to build a more resilient, less U.S.-dependent economy if re-elected. But he cautioned that the financial shock will still be felt.
“We’ve seen dramatic moves in the financial markets,” he said. “That’s telling Americans—those who are paying attention—that there are job cuts, higher inflation, and a likely U.S. recession on the way.”
Brexit as a Warning Sign
Drawing on his experience as Governor of the Bank of England during Brexit, Carney compared the current situation to the U.K.’s economic downturn following its departure from the European Union.
“I’ve seen this movie before,” he said. “It took some time for the impacts of Brexit to hit, but they came. The Americans are going to get weaker.”
Political Leaders React
While Carney focused on the economic risks, other party leaders spent Saturday promoting their own strategies to shield Canada from global volatility.
Conservative Leader Pierre Poilievre pointed to a recent Fox News interview in which Trump said he’d “rather deal with a liberal than a conservative,” dismissing Poilievre as “no friend of mine.” The Conservative leader said the comment was proof that Trump wants the Liberals in power.
“Why does Donald Trump want the Liberals to win a fourth term?” Poilievre asked while campaigning in Osoyoos, B.C. “The answer is clear: he wants Canada to be weak.”
Poilievre promised to strengthen Canada’s independence by accelerating energy infrastructure projects, including pipelines and natural gas plants.
NDP Leader Jagmeet Singh, speaking in St. John’s, praised Canadians for standing together in response to U.S. tariffs and promised his party would continue fighting to protect workers.
“Cutting what people need is not the way forward,” Singh said, taking aim at Liberal and Conservative spending plans. “We move forward by lifting each other up.”
Bloc Québécois Leader Yves-François Blanchet did not address the recession directly but said his proposal to limit foreign takeovers of Quebec companies shows his commitment to preserving local jobs.
