How US tariffs on Canada will hit Indian workers, students there: Decoded

With approximately 1.86 million people of Indian origin in Canada, these trade tensions are expected to have a significant impact on their livelihoods

Canada is caught in escalating trade disputes, facing tariffs from both the United States and China. Washington has imposed duties on Canadian goods, citing trade imbalances and border security concerns, while Beijing has responded with heavy charges on Canadian seafood and agricultural exports after Ottawa banned Chinese steel, aluminium, and electric vehicles.

 

With approximately 1.86 million people of Indian origin in Canada, as per the 2021 census, these trade tensions are expected to have a significant impact on their livelihoods.

 

Jobs at risk

 

"The tariffs on Canadian products imposed by the US are likely to cause widespread job losses, especially in the automobile and manufacturing sectors. Also, investment in existing or startup businesses is already seeing a slowdown, as entrepreneurs wait to see how the investment climate in Canada shapes up. Therefore, job prospects for workers are likely to suffer a setback," Darshan Maharaja, a Canada-based immigration analyst told Business Standard.

 

 

He added that Canada's counter-tariffs on American products would further strain the cost of living, which is already a major concern.

 

The impact is already visible. Alubar, an aluminium rod manufacturer in Bécancour, shut down its operations on March 4, 2025, citing US tariffs as the direct cause. The United Steelworkers union (USW), representing 70 workers at the plant, is urging both the Quebec and federal governments to implement an action plan. Their demands include modernising industrial plants, promoting Canadian products, diversifying the economy, and supporting affected workers.

 

"We've been talking for weeks about measures to support the economy. What is the concrete plan? Because this morning, we're the first to be punched in the face, and we need help," said Jessy Trottier, president of the USW’s local union representing Alubar workers.

 

"Cross-border opportunities are expected to dwindle as long as the tension between the two countries persists," Maharaja added.

 

Cost of living concerns

 

"Tariffs will likely increase the cost of living for all individuals in Canada, including Indian nationals who are workers or students. In certain industries, both the tariffs and the retaliatory tariffs may also lead to layoffs or loss of revenue, which will tighten job and work opportunities. At this moment, there are no immigration-related restrictions linked to these tariffs, but we have seen other cases, such as Colombia, where stricter immigration vetting was used as a bargaining tool. We are monitoring the situation in Canada, but there are no signs of this yet," Jack Kim, Partner at US-based law firm Fragomen told Business Standard.

 

He added that while tariffs have not yet affected Canada's immigration system or permanent residency pathways, this could change depending on how the economic situation evolves in 2025.

 

Impact on students

 

"This will not affect international students as much, because they are largely employed in the service and retail sectors," Maharaja said.

 

However, students will feel the effects of rising living costs and a weakening job market once they complete their education. There has already been a sharp decline in Indian students choosing Canada for higher studies. According to data from the Indian government, the number of Indian students going to Canada dropped by 41% in 2024 as compared to 2023.

 

Meanwhile, world leaders from New Delhi to Brussels, who are also facing tariffs from US President Donald Trump’s administration, are closely watching how Canada handles the situation.

 

"This tariff war does not have a direct impact on immigration, however, aspiring immigrants should consider the worsening economic situation in Canada before deciding to move," Maharaja cautioned.