Donald Trump’s unpredictable tariffs are already hitting Canadian jobs and industries hard, especially in sectors like auto manufacturing, and steel and aluminum production. The effects will spread quickly and put public services at risk of cuts and privatization. CUPE is ready to defend the jobs and public services that keep our communities strong.

Economic fallout hurts government budgets

Economists are warning a recession may be on the horizon. Widespread job cuts and scaled back industrial production could push the economy into a recession.

Tariffs may also bring back inflation. When the cost of imported goods rises, businesses often pass price increases on to consumers.

Lower employment and reduced economic activity mean less public revenue flowing to government – just as demand for public services starts to climb. The longer Trump’s tariffs are in place, the more likely municipal, provincial and federal government budgets will feel the squeeze.  

Governments face a critical choice: step up with bold investments in public infrastructure and public services to support people through economic uncertainty and stabilize the economy. Or go down the road of tax cuts, deregulation, and privatization, leaving communities to bear the burden.

Public investment protects our communities

Investing in public infrastructure is one of the most effective ways governments can stimulate our economy now and strengthen it for the future.

Over the short term, public investment in infrastructure creates good jobs and drives economic activity. Over the long term, it improves life for everyone, increases productivity, reduces costs for business and helps stimulate increased business investment. For example:

  • Investing in airports, bridges, ports and railways will strengthen Canada’s trade capacity by helping move goods within Canada and to new export markets.
  • Developing East-West electricity connections will give Canada greater energy independence from the United States.  
  • Building social housing will address the housing crisis, while also creating thousands of good jobs and stimulating sectors hit hard by tariffs, like steel and lumber.

Strong public services help communities weather an economic storm. High-quality public health care, education, child care, and social services are a safety net for those hit hardest. These services also sustain local economies by keeping people employed. Public services help cushion the impacts of a recession and renewed inflation.

A well-funded public post-secondary education system is essential for workers to retrain and reskill as the economy transitions and industries evolve. We must defend and expand these services to ensure no one gets left behind.

Right-wing plans hurt workers and communities

Right wing commentators, the business lobby and Conservative and Liberal politicians are using this crisis to call for the same failed policies. They want to cut taxes, eliminate regulations and privatize. These regressive moves won’t make Canada more “competitive,” they will harm workers and communities.

Tax cuts mean less money for strong public services. When governments slash revenue, it undermines their ability to invest in the supports workers and communities need to get through a crisis.

Deregulating Canada’s economy won’t stop U.S. tariffs. But it will make Canadian workers and communities more vulnerable. Often the regulations being cut safeguard health and safety, environmental and labour standards, or ensure fairness for consumers. Weakening these protections shifts costs to Canadians.

Privatization is a short-sighted and harmful response to Trump’s tariffs. Privatizing public infrastructure and services costs the public more, reduces quality, increases secrecy and shifts control to private, profit-driven corporations. Selling public infrastructure or contracting out services weakens a government’s capacity to respond to economic shocks.

Privatization often means job cuts, lower wages, and fewer benefits – exactly the opposite of what’s needed right now. Let’s work together to protect the jobs and public services that keep our communities strong.

What CUPE locals can do