Canada shed 40,000 jobs in July after Trump’s tariffs hammered key sectors

Canada launched tens of thousands of jobs in July, as the country’s employment rate took place to its lowest point in eight months, as US President Donald Trump’s tariff spread across the main industries.

The reflection of the labor market came just weeks after the increase in employment. The Canadian statistics data, which was martyred by Reuters, showed that the economy established 83,000 jobs in June, but lost 40,800 in July, when he achieved nearly half of this profit.

Canadians of working age with jobs fell to 60.7 %, while the unemployment rate is fixed at the highest level in the year of 6.9 %, according to the port.

Reuters said that Trump’s sectoral definitions on steel, aluminum and cars have reached the manufacturing sector strongly and reduced employment intentions for companies, citing data from Canada Bank.

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As part of the broader trade policy, “First America”, Trump presented a special tariff for the sector in an attempt to protect the manufacture of the United States and reduce the trade deficit with the main partners.

Reuters said that manufacturing employment decreased by about 10,000 from the previous year, according to Canada statistics.

Marti Warren, the national director of the United Solid Workers Union, confirmed to the port that about 1,000 of his members have been demobilized.

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Canada Bank, photographer here in Ontario, Canada, May 23, 2017. (Reuters/Chris Watti/Photo File/Reuters)

Young workers were particularly injured. Reuters added that the unemployment between 15 and 24 has jumped to 14.6 %, while their employment rate decreased to 53.6 %, invisible levels since the late 1990s, with the exception of the epidemic years.

Despite the setbacks, the rate of national workers’ demobilization remained 1.1 %, indicating some stability in other parts of the economy, the director said.

Canada Bank left the standard interest rate without changing this week, but it has been hinting that it may move to reduce prices if growth continues to falter and inflation is still in control.

President Donald Trump signs an executive order at the White House Oval Office in Washington, DC, January 30, 2025. (Bonnie Cash/Upi/Bloomberg/Getty Images/Getty Images)

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Oxford economist Tony Davborte expects further losses in future jobs, expecting about 140,000 workers’ demobilization and unemployment in the mid -7 % later this year, according to Reuters.

Fox Business has arrived at the White House for comment.

Reuters contributed to this report.