Trump Tariffs Canada: Layoffs, Severance, and Employee Rights (2025 Guide)

Did the U.S. hit Canada with tariffs?

Yes. U.S. President Donald Trump has implemented substantial duties on a variety of Canadian goods — planning to hit the country with more.

Economic disruptions caused by tariffs can affect non-unionized workers in Ontario, Alberta, and British Columbia in various ways.

If you’re experiencing a workplace issue related to the ongoing Canada-U.S. trade war, check out our resource below and schedule a consultation with the knowledgeable team at Samfiru Tumarkin LLP.

Latest tariff news & layoff updates

Each month contains information about important U.S. tariff updates, layoffs, and government announcements for Canadians.

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Which industries are at risk?

Key industries at risk as the Canada-U.S. trade war rages on include:

• Agriculture & dairy
• Auto manufacturing
• Energy exports
• Forestry
• Manufacturing
• Technology & electronics
• Tourism

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Lior Samfiru on U.S. tariffs

“Despite the extreme nature of these tariffs, employment laws and rights in Canada don’t go out the window,” Lior Samfiru, employment lawyer and co-founding partner of Samfiru Tumarkin LLP, said.

“Even in a situation where a company has to make personnel moves because of the trade action, it doesn’t give employers new rights vis-à-vis their staff. There’s still the obligation to provide full severance — up to 24 months of pay — and there’s still a prohibition on temporary layoffs as well as significant changes to the terms of an individual’s employment.”

LISTEN: Samfiru discusses the Canada-U.S. trade war with Newstalk 580 CFRA’s Bill Carroll.

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3 key rights for non-unionized employees in Canada

U.S. tariffs on Canadian goods can affect your employment in a variety of ways.

Here are three key rights that are crucial for non-unionized employees in Ontario, Alberta, and British Columbia.

1. Can I be temporarily laid off?

Temporary layoffs are considered illegal in Canada — unless you agreed to the layoff or it’s addressed in your employment contract.

If you’re temporarily laid off due to the tariffs, or for any reason, contact an experienced employment lawyer at Samfiru Tumarkin LLP.

You might be able to pursue full severance pay through a constructive dismissal claim.

SEE ALSO
• How to calculate severance pay in Canada
• Severance packages during a recession
• Employment Law Show: Things your employer can’t legally do

2. Can my employer make major changes to my job?

A trade war doesn’t give employers in Canada the right to make significant adjustments to the terms of an individual’s employment without their consent.

Major modifications, such as a demotion, pay cut, or workload increase, are illegal in the country.

WATCH: Everything Canadians need to know about changes to their job on an episode of the Employment Law Show.

Learn more about your rights if major changes are made to your job in Ontario, Alberta, and British Columbia.

3. Can my employer fire me?

Employers in Canada can fire non-unionized workers for any reason, as long as they’re provided full severance pay and the reasons for their dismissal aren’t discriminatory. This is known as a termination without cause.

• SEE ALSO: Termination for cause in Canada: Employee rights

Terminated due to Trump’s tariffs? 5 things to do

1️⃣ Don’t sign anything immediately: Take your time to review all termination documents carefully. Speak with a lawyer before signing anything to ensure you’re fully informed and protected.

2️⃣ Document everything: Save copies of employment contracts, termination letters, severance offers, and correspondence with your employer for future reference.

3️⃣ Use our Severance Pay Calculator: Estimate what you’re owed with our firm’s free Severance Pay Calculator. This will help you understand your entitlements and plan your next move.

4️⃣ Get legal advice: Contact an experienced employment lawyer at Samfiru Tumarkin LLP to ensure your severance package reflects your full rights.

5️⃣ Start exploring new opportunities: Update your resume and begin searching for new roles. Proactively seeking work not only boosts your career, but also demonstrates your effort to find a new job, which is crucial in severance claims.

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Tariff FAQs

Can I be fired without severance pay due to the trade war?

Unless your employer has grounds to fire you for cause, then the company must provide you with the proper amount of severance pay — regardless of the current economic conditions.

What is the federal government doing to combat U.S. tariffs?

The federal government has implemented counter-tariffs on billions of dollars worth of American goods and unveiled a $6-billion business relief plan.

Are provinces doing anything to combat U.S. tariffs?

Yes. Provinces, including Ontario and British Columbia, have implemented a suite of retaliatory measures (i.e. removing U.S. booze from stores).

Do employment contracts affect severance?

Yes, an employment contract can affect your severance entitlements if it includes enforceable termination clauses.

However, many of these clauses may be invalid for several reasons.

Are temporary layoffs legal?

Temporary layoffs for non-unionized employees are generally not permitted unless specifically allowed by an employment contract.

Otherwise, a layoff may be treated as a termination through a constructive dismissal claim.

What if my temporary layoff becomes permanent?

If your temporary layoff becomes permanent, don’t accept a severance offer before seeking legal advice. Our team can review your situation, assess your legal options, and help you secure the compensation you deserve.

If you’ve already accepted your employer’s severance offer, it’s still in your best interest to contact Samfiru Tumarkin LLP.

Am I entitled to severance as a contractor?

If your work closely resembles that of an employee — such as reporting to a manager, using company equipment, or working regular hours — you may qualify for severance even if classified as a contractor.

Should I negotiate my severance package?

To ensure that you receive the amount of compensation that you’re entitled to, let our lawyers in Ontario, Alberta, and British Columbia negotiate on your behalf.

Are severance deadlines legal?

Your employer’s deadline to accept a severance offer isn’t legally binding.

You have up to two years from your termination date to file a claim for severance, so it’s important to review your offer carefully and seek legal advice before signing anything.

Can unionized employees get severance?

Unionized employees are governed by collective agreements, which outline severance and other rights.

By law, only your union can represent you in these matters — even if you feel your union isn’t providing adequate assistance. Unfortunately, our firm can’t assist represent employees with severance or wrongful dismissal issues.

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Why Samfiru Tumarkin LLP?

At Samfiru Tumarkin LLP, we’ve helped over 50,000 clients resolve complex workplace matters and secure fair severance packages — recovering millions of dollars for non-unionized employees across Canada.

With extensive experience representing workers in roles at small businesses and large organizations across various industries, our team provides the expertise you need during times of economic uncertainty.

WATCH: Understand the difference a legal professional can make in certain situations on an episode of the Employment Law Show.

We specialize in assisting non-unionized employees in Ontario, Alberta, and British Columbia — ensuring rights are fully protected.

In addition to employment law, our firm handles disability claims and personal injury cases.

Call 1-855-821-5900 today or request a consultation online.

Disclaimer: The materials provided in this article are for general informational purposes only and DO NOT constitute legal advice. For advice specific to your situation, please consult a legal representative at Samfiru Tumarkin LLP.