Canada is not just challenging the US on trade – it wants its immigrants too

Canada is preparing to hit back at Donald Trump’s tariff offensive with duties of its own. But Ottawa’s response to Washington is not limited to steel, electronics and other American goods. It is also looking north of the US border for the workers, researchers and H-1B visa holders who may be pushed out by Trump’s immigration crackdown.

Prime Minister Mark Carney has promised to match the latest US tariffs “dollar for dollar” after trade talks collapsed. As the two countries move towards a wider trade confrontation, Canada is promoting a Talent Attraction Strategy aimed at strengthening its economy with skilled workers in healthcare, artificial intelligence, research and advanced industries.

The message is clear: Canada wants to reduce overall immigration, but it still wants the immigrants it considers economically valuable. And as the US makes foreign workers more expensive and uncertain, Ottawa is hoping some of them will choose to come north.

Canada’s Talent Attraction Strategy

Canada’s Immigration, Refugees and Citizenship Department, or IRCC, has introduced a Talent Attraction Strategy to bring in highly skilled workers in healthcare, research, artificial intelligence, advanced manufacturing and other sectors facing labour shortages.

According to IRCC, the strategy will:

• prioritise high-skilled workers in sectors with labour shortages
• connect Canadian employers with international talent
• speed up work-permit processing for selected workers and researchers
• create pathways to retain temporary workers through permanent residence
• support foreign-trained professionals in getting their qualifications recognised
• promote Canada as a destination for international talent

The strategy was included in Canada’s 2026–2028 immigration planning and is part of the government’s effort to attract talent while reducing overall temporary migration.

Canada has also proposed a one-time programme to recruit more than 1,000 international researchers and academics, along with their families. The government says Budget 2025 proposed up to C$1.7 billion for international research and talent recruitment.

Proposed pathway for H-1B visa holders

One of the main proposals under the strategy is an accelerated immigration pathway for H-1B visa holders in the US.

IRCC says the route is intended to attract highly skilled workers in healthcare, research, advanced industries and other sectors that Canada considers important to its economy. However, the government has not yet announced the detailed eligibility rules, application process or launch date.

The proposed route should therefore not be described as an open visa programme. It is a policy commitment that Canada says it will develop.

Canada had earlier launched a temporary H-1B work-permit programme in 2023. It allowed eligible H-1B visa holders living in the US to apply for an open Canadian work permit valid for up to three years.

The programme reached its limit of 10,000 applications on July 17, 2023, according to IRCC, and is closed to new applicants. Family members of people who applied under the programme were allowed to seek entry to Canada as visitors, students or workers under separate arrangements.

The earlier programme showed that there was demand among H-1B workers for an alternative to the US. The proposed new pathway would allow Canada to target that pool again, this time as part of a broader talent strategy.

Canada wants fewer temporary residents—but more targeted talent

Canada’s immigration policy is not based on increasing migration across the board. The country is reducing temporary-resident numbers while trying to select workers who can fill specific economic needs.

Under the 2026–2028 Immigration Levels Plan, Canada has set a target of 380,000 permanent-resident admissions each year. Temporary-resident arrival targets are set at 385,000 in 2026, falling to 370,000 in 2027 and 2028.

The government aims to reduce temporary residents to less than 5% of Canada’s population by the end of 2027. It also wants permanent-resident admissions to remain below 1% of the population beyond 2027.

IRCC says the Talent Attraction Strategy will not increase the overall number of temporary or permanent residents entering Canada. Instead, it will use existing immigration spaces to prioritise workers and researchers in sectors where the country has labour shortages.

Why Canada needs immigrants

The Canadian government says immigrants already make up a significant share of the country’s workforce.

Data from Statistics Canada cited by IRCC shows that immigrants represented:

• 40% of workers in professional, scientific and technical services in 2024
• 23% of workers in construction
• 44% of workers in transportation and warehousing
• 43% of workers in accommodation and food services

Immigrants also accounted for one in three healthcare workers. They made up 41% of pharmacists, 36% of licensed practical nurses and 49% of nurse aides, orderlies and patient service associates.

International students also contribute to the Canadian economy. According to IRCC, they contributed C$39 billion to Canada’s GDP in 2024, spent C$47.5 billion in the country, generated C$9.4 billion in tax revenue and supported more than 407,000 jobs.

Canada’s strategy is therefore selective. It is cutting temporary migration levels and responding to pressure over housing and public services, while continuing to compete for workers and researchers it considers economically valuable.

The trade dispute with the US gives that strategy a sharper edge. As Trump raises tariffs and Canada prepares countermeasures, Ottawa is also positioning itself as an alternative destination for skilled workers who may find the US less welcoming.

Canada is not only challenging the US over trade. It is also competing with it for the people who can drive economic growth.