Tariff expansion threatens Ontario jobs, supply chains, chamber warns

The Ontario Chamber of Commerce is warning that the recent expansion of U.S. Section 232 tariffs could put thousands of jobs at risk and further strain integrated North American supply chains.

The chamber said the expansion of duties to the full value of steel, aluminum, copper and derivative products, rather than only the metal content, poses an immediate threat to 15,000 jobs in southwestern Ontario alone, with broader impacts expected across provincial manufacturing supply chains and in U.S. states.

The issue emerged as business leaders gathered at the 2026 Ontario Chamber of Commerce AGM and Convention, where concerns were raised about the impact of tariffs on jobs, investment and trade.

“After a year in which tariffs devastated manufacturing in both Canada and the U.S., this new measure throws another wrench in the engine of the North American economy,” said Daniel Tisch, president and CEO of the Ontario Chamber of Commerce. “These tariffs are not well-understood, and that’s why Ontario businesses are sounding the alarm. Without swift relief, orders will vanish, investments will be shelved and good jobs will be lost.”

The chamber said businesses are already reporting higher costs, lost U.S. customers and delays or cancellations of expansion plans, while some are scaling back production or pausing hiring.

“Businesses need two things from governments right now: relief and resolution,” Tisch said. “In the short term, that means reinstating remissions and providing targeted cash-flow support. But we also need a durable fix, one that’s negotiated between the two nations. If we get this wrong, we’re not just hurting Ontario, we’re undermining North America’s competitive edge.”

The chamber is urging governments to provide short-term support while pursuing a negotiated resolution ahead of the upcoming review of the Canada-United States-Mexico Agreement.