Thank you very much. It's an honour to work with Steve and Chrystia as we're trying to fix NAFTA.
My name is Jerry Dias and I am the national president of Unifor, Canada's largest union in the private sector. With me is Angelo DiCaro, the acting director of our research department and our lead policy analyst on international trade.
On behalf of Unifor, I want to thank the chair, vice-chairs, and members of this committee for the invitation to speak and for accommodating our participation through video conference. I have five minutes, so let me get right at it.
U.S. trade attacks on Canada are a clear and present threat to our national economy. A trade war with the United States is not looming. It's here already. Last month I was in Moncton, New Brunswick. I was giving a speech to our members, including those who work in softwood lumber and in groundwood paper mills. I arrived to the news that the Trump administration had triggered national security tariffs on steel and aluminum, and that Canada was in the crosshairs. I explained in my speech how the $16 billion worth of tariffs equates to about 40,000 direct metalworking jobs in Canada, not including the spinoffs. Those include thousands of Unifor members in aluminum and steel facilities across Canada and in Quebec.
I said at the time that it was time to stand up, to fight back, that Canada couldn't get pushed around anymore. But as I was making my case, I realized I was speaking to workers already in the grips of this struggle. I am glad that strong economic conditions have helped our softwood producers stay afloat despite U.S. tariffs. The problem is that there is no end in sight to this dispute.
It's different for our newsprint industry, which is facing a much more challenging economic outlook. These producers are facing export duties in excess of 30% in some cases. We are monitoring closely situations at mills in Corner Brook, Trois-Rivières, Port Alberni, Powell River, and Crofton. These mills are on the brink and job loss appears imminent, yet there has been no enhanced federal support package provided to them, unlike for softwood.
It was shortly after I returned from Moncton that I learned about Trump initiating a national security investigation into the import of cars and parts. Our auto industry directly employs 120,000 people in Canada. About 95% of what we export goes straight to the United States. Two-thirds of all imports of autos come from the U.S. as well. Our supply chains are tightly connected. Suffice it to say any major tariffs on cars and parts won't be good for anyone.
How Canada responds to these trade threats is of critical importance. No one wants to see this trade war escalate further, but the U.S. has left us with no choice but to strike back. Unifor supports the proposed countermeasures as laid out by the federal government. The problem is that slapping tariffs on U.S. goods by itself will not keep our factories running or our workers employed. Now is the time for government to step in, to help our key industries weather this storm. That means moving quickly to develop and execute a mitigation strategy, not unlike what was delivered for the softwood lumber industry. The Government of Quebec has already offered up $100 million to bolster the steel and aluminum sector. We have to take this opportunity to reinvest in our workplaces and social infrastructure so a move could actually help our trade diversification efforts.
We have to keep skilled workers on the job and avoid permanent layoffs. We have to do that through enhanced work sharing and other measures. Funding social programs like pharmacare would give our economy a progressive competitive edge. Financial supports, including loan guarantees, can help facilities stay afloat as well as modernize production processes. These should be explored.
By getting creative we could actually backstop these new investments with revenues generated through the proposed counter-tariffs, a figure we have pegged at nearly $2 billion. These are just some ideas. We look forward to hearing more.
Let's not sit and wait. Canada will not be a casualty in this ridiculous trade war. We won't let that happen.
Thank you very much. We certainly are looking forward to your questions.
While I'm at it, great work, Tracey, on the trade file. Thank you.