Although Canada has previously responded to unfair U.S. tariffs with retaliatory measures, Unifor argues these actions have failed to prevent Canadian companies from shifting operations south of the border—moves that have resulted in substantial job losses and economic disruption.

Unifor is demanding the federal government immediately invoke FEMA to penalize companies that offshore operations due to U.S. trade policies or incentives. The union’s proposal includes a suite of actions that range in severity, from applying existing FEMA provisions to introducing robust amendments that would allow for far-reaching enforcement powers—including import bans and asset seizures.

Currently, FEMA allows the Attorney General, supported by the Minister of Foreign Affairs, to issue blocking orders against foreign directives deemed harmful to Canadian interests. Such orders can criminalize compliance, with penalties reaching up to $1.5 million for corporations and five years’ imprisonment for individuals.

“The tools already exist—we just need the political will to use them,” said Payne. “By activating FEMA now, and reinforcing it through legislative amendments, Canada can finally push back against the offshoring of good Canadian jobs.”

In addition to legislative updates, Unifor is urging the government to make FEMA compliance a requirement for any company seeking relief from Canada’s retaliatory tariffs. The union is also calling for expanded penalties, including asset seizures and restricted access to government contracts for non-compliant companies.

“We cannot continue to reward companies that hollow out our communities and weaken our economy,” said Payne. “This is about protecting Canadian jobs, defending our national interests, and asserting our economic sovereignty.”

Unifor represents 320,000 workers across all major sectors of the Canadian economy. The union is committed to advocating for workers’ rights, advancing equality and social justice, and pushing for progressive change across Canada and beyond.