The ‘Big Money Show’ panel discusses Commerce Secretary Howard Lutnick predicting President Donald Trump will secure a trade deal with the EU by Aug. 1 and calling on Canadian Prime Minister Mark Carney to open markets to the U.S.
Canada shed tens of thousands of jobs in July, dragging the country’s employment rate to its lowest point in eight months as U.S. President Donald Trump’s tariffs rippled through key industries.
The labor market’s reversal came just weeks after a surge in hiring. Statistics Canada data, cited by Reuters, showed the economy created 83,000 jobs in June but lost 40,800 in July, erasing nearly half of that gain.
The share of working-age Canadians with jobs slipped to 60.7%, while the unemployment rate held steady at a near-multi-year high of 6.9%, according to the outlet.
Trump’s sectoral tariffs on steel, aluminum and autos have hit the manufacturing sector hard and reduced the hiring intentions of companies, Reuters said, citing statements from the Bank of Canada.
TRUMP ESCALATES CANADA TARIFFS TO 35% WHILE SETTING NEW TARIFF RATES FOR DOZENS OF OTHER COUNTRIES
Workers discuss their jobs at Steelcon, a structural steel design and fabrication company, in St. Catharines, Ontario, Canada, Jan. 31, 2025. (Carlos Osorio/File photo / Reuters)
As part of a broader “America First” trade policy, Trump introduced sector-specific tariffs in an effort to protect U.S. manufacturing and reduce trade deficits with key partners.
Manufacturing employment fell by nearly 10,000 from a year earlier, according to Statistics Canada, Reuters said.
Marty Warren, national director of the United Steelworkers union, confirmed to the outlet that about 1,000 of its members have been laid off.
TRUMP RAISES TARIFFS ON INDIA, CANADA, BRAZIL AND OTHERS OVER STALLED TRADE DEALS
The Bank of Canada, pictured here in Ontario, Canada, May 23, 2017. (Reuters/Chris Wattie/File Photo / Reuters Photos)
Youth workers were hit especially hard. Unemployment among 15- to 24-year-olds jumped to 14.6%, while their employment rate fell to 53.6%, levels unseen since the late 1990s, excluding pandemic years, Reuters added.
Despite the setbacks, the national layoff rate stayed at 1.1%, suggesting some stability in other parts of the economy, the outlet said.
The Bank of Canada left its benchmark interest rate unchanged this week but reportedly hinted it could move to cut rates if growth continues to falter and inflation remains under control.
President Donald Trump signs an executive order in the Oval Office of the White House in Washington, D.C., Jan. 30, 2025. (Bonnie Cash/UPI/Bloomberg/Getty Images / Getty Images)
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Oxford Economics economist Tony Davenport expects further job losses ahead, forecasting about 140,000 more layoffs and unemployment climbing into the mid-7% range later this year, according to Reuters.
FOX Business reached out to the White House for comment.
Reuters contributed to this report.
