Donald Trump’s back, and he has announced tariffs against Canadian industry. He has now confirmed that he will impose a 25 per cent general tariff with a lower 10 per cent tariff on oil starting Feb 4. This threatens to destroy hundreds of thousands of jobs. What can the labour movement do to defend workers from the coming turmoil?
Canada’s corporate elite are pushing for a trade war. Mark Carney and Chrystia Freeland—the frontrunners of the Liberal Party’s leadership race—both demand “dollar-for-dollar” retaliation. Trudeau says that “everything is on the table” in terms of responding to Trump, and Poilievre has also stated that he would also respond with counter tariffs.
Premier Doug Ford has been talking a very big game, saying that Ontario is “going to throw everything and the kitchen sink at this”, and that America “will feel the pain”.
According to The Globe and Mail, American tariffs of 25 per cent would decrease Canadian GDP by 2.7 per cent. If Canada retaliates dollar-for-dollar, losses could more than double to 5.6 per cent. Aside from the COVID crisis, this would represent the largest economic collapse since the Great Depression.
By any estimate, this places hundreds of thousands of jobs at risk. Just in Ontario alone, there are 500,000 jobs that will likely be lost in a trade war.
No faith in the ruling class
This represents an existential crisis for the labour movement. Union leaders have therefore come out swinging, denouncing Trump’s tariffs and deploring the threat to good union jobs. But so far, their solution has been to put their faith in the federal government and join hands with Canadian capitalists.
Lana Payne, president of Unifor, Canada’s largest private sector union, has joined an unholy alliance of capitalists and right-wing politicians known as the Canada-U.S. relations council. This includes hated former Quebec premier Jean Charest who is known for his brutal attacks on the labour and student movements.
Payne has penned an open letter urging for “strategic tariff retaliation” to protect workers. Politically, Jagmeet Singh and NDP have pushed hard for counter tariffs. And Ruba Ghazal, a spokesperson for the left-wing party Québec solidaire, wants François Legault to hike the price of hydroelectricity sent to the U.S., saying Trump would have to “explain to his voters” why they pay more for electricity. In other words, she favours punishing working class people in the U.S. for Trump’s actions.
But tariffs would do nothing to save the hundreds of thousands of jobs on the chopping block. Let’s be clear: this trade war is not our war. This is nothing but a battle between two capitalist powers over who gets the biggest slice of the pie. Both sides will try to inflict the most pain on the other, even if it means hundreds of thousands of workers lose their jobs. Inevitably, it will be Canadian and American workers who will pay the price.
Therefore, the working class has no side in this battle. Instead of defending “our own” capitalists, we need class struggle methods to defend jobs.
Only the working class can protect jobs
Trump’s tariffs would mean an immediate economic crisis. And in every capitalist crisis, the bosses respond by making the workers pay. These oh-so patriotic Canadian capitalists will slash wages and implement mass lay-offs to keep their profits. And they’ll ruthlessly attack the trade unions to keep them from fighting back.
Therefore, the only way to defend jobs is through militant class action. We should accept no lay-offs or wage cuts. If the bosses attempt to use the trade war to justify these things, workers should immediately occupy their workplaces. There is already a strong tradition of factory occupations in Ontario which led to many jobs being saved in 2007 when the auto manufacturers closed down plants in search of cheaper labour costs elsewhere.
A mass factory occupation movement, combined with the demand for the nationalization of plants under workers control is the only way to protect jobs and entire communities.
Moreover, what is sorely lacking from all union leaders, the NDP, and QS, is an internationalist approach. By creating a mass working class movement across Canada and Quebec, we can appeal to our brothers and sisters on the other side of the border to do the same. Canadian and American workers, arm in arm, united against these bandits fighting over the loot can put an end to this imminent disaster.
No faith in the ruling class!
For working class action to protect jobs!
