Canada loses jobs for first time in three years after US tariffs

The employment rate fell in Canada in March for the first time in three years, the national statistics center reported Friday, at a time when companies cut back on hiring because of the US trade war.

Last month, 33,000 jobs were created in Canada, pushing the unemployment rate up 0.1 percentage point to 6.7%, according to Statistics Canada.

Employment rate fell due to the loss of full-time jobs

"I know many Canadians are concerned," Prime Minister Mark Carney said Friday in the wake of new tariffs announced by his US counterpart Donald Trump.

"The weeks and months ahead will not be easy, but we will not abandon them. We will fight these tariffs," Carney added during a rally in Montreal ahead of the national election.

The employment rate retreated in March on the loss of full-time jobs, a sector that registered "a strong upward trend in the second half of 2024," Statistics Canada detailed in a statement.

This drop impacted the private sector mainly in wholesale and retail, information, culture and entertainment.

Canada was spared much of the tariffs announced by Trump on Wednesday because Washington guaranteed an exemption for goods that are part of the T-MEC trade agreement between the United States, Mexico and Canada.

On Thursday, however, Ottawa announced tariffs of 25% on imports of some US vehicles after Washington imposed surcharges on steel and aluminum, also impacting the Canadian market.