Trump Unleashes Tariff Fury: Canada Defies US, Forges China EV Deal Amidst Global Job Chaos!

Breaking News: Global Economic Turmoil Hits Hard

A storm is brewing in global trade, threatening jobs and livelihoods. The United States is on a collision course with Canada, as President Trump issues a shocking new threat of 100% tariffs on Canadian imports. This comes after Canada's bold move to finalize a new electric vehicle (EV) trade deal with China. The world watches as economic alliances shift and labor markets face unprecedented pressures.

Canada's Daring Pivot: US Retaliation Looms

Canada is making headlines with its strategic shift. Prime Minister Mark Carney is actively diversifying trade partners, reducing reliance on the US. Just this week, China's Foreign Ministry confirmed a new "strategic partnership" with Canada.

This partnership includes a landmark EV deal. Canada will now allow up to 49,000 China-made EVs annually at a 6.1% tariff. This quota is expected to grow to 70,000 units within five years. Analysts see this as Canada's clear effort to reset economic ties with Beijing.

But the move has ignited US fury. US Treasury Secretary Scott Bessent echoed President Trump's warnings. He stated the US will impose 100 percent tariffs on Canadian goods if the China deal proceeds. This escalating trade war threatens Canadian jobs.

Canadian Jobs Slow: A Worrisome Trend

Canada's labor market is already slowing. It's "rebalancing, not breaking," but concerns are real. The unemployment rate jumped to 6.8% in December 2025, up from 6.5%. This rise is mainly due to more people seeking work, not mass layoffs.

Job growth has decelerated significantly. Only 8,200 new jobs were added in December. Full-time employment saw a modest increase of 50,000 positions. However, part-time work declined by 42,000.

• Youth employment has weakened further.

• Healthcare and social assistance sectors are still hiring.

• Professional and consumer-facing industries, however, are softening.

The Bank of Canada is expected to cut its policy rate for the seventh straight meeting on March 12, amidst this economic uncertainty. "The impacts of tariff-related trade uncertainty in 2025 have been detailed in recent Statistics Canada studies," notes one report.

UK Faces Dire Job Market

Across the Atlantic, the UK's labor market is struggling profoundly. It is "continuing to weaken," with grim statistics emerging. Payrolled employment plummeted by over 90,000 in the last quarter. This marks the largest fall outside the pandemic era.

Official figures show that the number of employees on payrolls fell by 43,000 in December, reaching 30.2 million. The unemployment rate remains stubbornly high at 5.1%, a four-year peak.

• Youth unemployment is at its highest in a decade.

• Vacancies have stabilized but remain below pre-pandemic levels.

• Wage growth for the private sector is at its lowest rate in five years.

• Retail and hospitality sectors are particularly hard hit.

Naomi Clayton, Chief Executive at the Institute for Employment Studies, stated: "The labour market is continuing to weaken. Payrolled employment has fallen by over 90,000 in the last quarter – the largest fall outside the pandemic."

US Job Market: AI Boom Amidst General Slowdown

The US job market presents a contrasting picture. It's described as "uneven" and "increasingly selective." Overall hiring has cooled, with job postings either flat or declining. The economy added only 50,000 jobs in December.

Yet, there's a startling surge in one area: AI-related jobs. Postings mentioning AI or AI-related terms have exploded by over 130%. This represents a "small pocket of growth." Employers are concentrating limited hiring on roles and skills tied to artificial intelligence.

The unemployment rate in the US dipped slightly to 4.4% in December 2025. However, wage growth for low- and middle-income roles has slowed. "2026 is likely to continue the 'low-hire, low-fire' environment," warns one report. Goldman Sachs projects tariff-driven inflation will increase in the first half of 2026, impacting American consumers.

What's Next

The Canada-US trade dispute could escalate rapidly. All eyes are on President Trump's next move. Canada's commitment to diversifying trade signals a new era of global economic maneuvering. The UK faces significant challenges to boost employment and wage growth. In the US, the AI job boom could redefine the future of work, but overall economic uncertainty remains. Expect more volatility as these powerful forces collide.