U.S. Chamber Warns New Canada Tariffs Risk 13 Million Jobs

New tariffs on Canadian goods would put 13 million American jobs at risk, according to the U.S. Chamber of Commerce, which is pressing the White House and Ottawa to reach a deal before a Section 338 deadline this week.

Neil Herrington, Senior Vice President for the Americas at the U.S. Chamber of Commerce, released the warning as the White House approaches the deadline to decide whether to impose new duties on Canadian goods under Section 338.

"As we approach this week's deadline of potential new tariffs on Canadian goods, we encourage U.S. and Canadian officials to continue to engage in constructive dialogue designed to address areas of concern in the current trade relationship and to avoid the imposition of new tariffs," Herrington said in the statement issued from Washington, D.C.

The stakes are substantial for the U.S. economy. The Chamber, the country's largest business lobbying group, argues that the introduction of higher tariffs would damage both economies simultaneously. American families would face higher costs. Critical supply chains, already strained, would face further disruption.

The jobs figure anchors the Chamber's case. The 13 million American jobs the group cites all depend on trade conducted under the U.S.-Mexico-Canada Trade Agreement, the trilateral pact that governs most commerce among the three nations. Any new tariff regime layered on top of USMCA commitments would, in the Chamber's view, put that employment base in jeopardy.

But the Chamber's statement is not a call for the status quo. Herrington laid out a specific bargain that Washington and Ottawa could strike instead of escalation.

The deal he describes has several components. It would significantly reduce U.S. Section 232 tariffs on imported Canadian steel, aluminum, lumber and auto components. It would return U.S. wine and spirits to Canadian shelves, reversing retaliatory delistings that have hit American producers. And it would enhance Canadian market access, expanding opportunities for U.S. exporters.

That package would function as a trade in concessions rather than a one-sided retreat. Canada gains relief on the metals and materials that feed its export economy. American wineries and distillers regain distribution in a market where their products had been pulled. Both sides expand access in the process.

The Section 338 statute, an obscure and rarely used provision of U.S. trade law, gives the White House leverage in the standoff. The approaching deadline forces a decision: impose the new tariffs or continue negotiating toward the framework the Chamber has sketched.

The Chamber's intervention signals where a broad swath of American business stands. Supply chains built around the USMCA region have already absorbed repeated trade disruptions in recent years. Another round of tariffs, the group argues, would compound the damage rather than resolve the underlying disputes.

For Washington and Ottawa, the week ahead will determine whether the Section 338 threat becomes policy or serves as the final pressure point that produces a comprehensive deal covering steel, aluminum, lumber, autos and alcohol.