Trump's tariffs begin to hurt Ontario — Canadian Province loses 38,000 jobs in Q2 as major job crisis looms

Canada job crisis caused by Trump tariffs: Ontario lost 38,000 jobs during the second quarter of 2025, found a new report from the province's Financial Accountability Officer (FAO) as tariffs put in place by US president Donald Trump start to take a devastating toll on the province's economy, according to a report.

Ontario's Unemployment Hits Highest Level Since 2012

The FAO report, published this week, shows a dire scenario of growing unemployment and massive job loss, especially in Ontario's industrial sector, as per a Global News report. The unemployment rate in the province increased for the ninth consecutive quarter to 7.8%, its highest since 2012, apart from spikes during the pandemic, according to the Global News report.

Manufacturing Sector Takes Major Hit from US Tariffs

The hardest hit was the manufacturing industry, which lost 29,400 positions, even business, building and support services lost 14,900 in the second quarter of 2025, as per the report. Other industries, such as transportation, warehousing, and agriculture, suffered declines as well, according to Global News. Ontario's industrial employment fell by 3.5% for the quarter overall, a decline FAO directly attributes to United States retaliatory tariffs, as reported by Global News.


However, some of the losses were compensated by gains in finance, insurance, real estate and scientific and technical services, but the overall situation is grim, according to the report.

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Opposition Criticizes Ontario Government’s Handling of Job Crisis

NDP MPP and finance critic Jessica Bell highlighted that, “These numbers are truly alarming. Ontario workers are facing the worst job losses in more than a decade, with the manufacturing sector hit especially hard,” adding, “Families can’t afford more government inaction while good, full-time jobs disappear from right underneath of us,” as quoted in the report.

Ontario Liberal finance critic Stephanie Bowman accused the government led by Premier Doug Ford of failing to fulfill its central election promise to “protect Ontario” from the US president and the effects of his economic policies, as per the Global News report.

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She pointed out that, “This report shows that we are heading in the wrong direction. Record spending by the Conservative government is doing nothing to fight high unemployment,” as quoted in the report. Bowman added that, “Never has a government spent so much to deliver so little. Working families are struggling, we are building housing at the slowest rate in a decade, and many of the businesses impacted by tariffs are not eligible for help from the province," as quoted by Global News.

What is Ontario Government Doing for Job Protection?

However, spokesperson for Ontario’s minister of finance emphasized that the government was making efforts to protect jobs, saying, “With President Trump’s tariffs taking direct aim at our economy, our government is using every tool we have to protect the over 800,000 jobs in Ontario’s world-class manufacturing sector,” as quoted in the report.

The finance ministry's comments come aftter Ontario unveiled $70 million for its tariff relief efforts, which is used to allocate money towards offering expanded training and employment services for workers in tariff-hit industries like steel or autos, as reported by Global News.

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FAQs

Why is Ontario losing so many jobs right now?
Ontario’s job losses are largely due to tariffs imposed by the US government, which have hit key industries like manufacturing hard, as per the Global News report.

Which sectors are suffering the most?
Manufacturing, business support services, transportation, warehousing, and agriculture have seen the biggest declines, as per the Global News report.