By Nicolas Maltais 
Has UAW lost its way?
Founded in 1935, it is headquartered in Detroit, Michigan, the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) is one of the largest unions in North America with over 400,000 active members.
UAW was always an international union representing autoworkers of both sides of the Canada/U.S. border. Locals on both sides of the border benefited by each other’s wins until the 1980s when the American side of the union started shifting to a less aggressive position, seeing more competition from Europe and Asia opting for concessions in order to obtain job security, while the Canadian side fought to maintain pressure on the employers. After a dispute over negotiation tactic in 1985, the Canadian members broke off and formed the Canadian Auto Workers (CAW) which then became Unifor in 2013.
While UAW supported Democratic candidates during the 2024 elections, UAW is now in support of Trump’s tariffs because they are in support of manufacturing jobs returning to the U.S. Since February 1st, there has been a daily flux of tariffs causing worldwide uncertainty and markets to freefall to their lowest levels in years.
Introduction of tariffs
While there have been constant changes to the proposed tariffs, one target that has remained constant is the auto industry. It’s evident that Trump believes all vehicles should be made in the U.S. and has targeted the Canadian and Mexican auto industries knowing full well the auto industry in all three countries is interconnected. The example often given is that of an engine for a truck being built in the U.S. crosses the border a half dozen times before being fully assembled and placed in the vehicle. While UAW has supported these tariffs, Unifor and many other unions have stood strongly against them.
Tariffs are not always a terrible idea, when utilized properly. They are typically used to address unfair trade practices and to strengthen domestic industries. What is happening now defies all logic.
The US Government imposed “reciprocal” tariffs on a number of countries, including China which was hit with 34% tariffs and India with 26%. Amongst these global heavyweights, Saint-Pierre-et-Miquelon, a small French island with a population of just over 5,000 located 25 kilometres off the coast of Newfoundland, Canada, was targeted with a crushing 50% tariff! It is a very fortunate thing that the majority of their exports go to Canada and France and is not a major trading partner with the U.S.
Another target of Trump’s economic might has been the “Heard and McDonald Islands”, uninhabited islands located 1,700 kilometers off the coast of Antarctica, whose penguin population now see their exports to the U.S. tariffed at 10%. Since the announcement earlier this week, journalists have begun the 7-day journey from Perth, Australia to interview the locals and are expected to report by early next week on the sentiments of the penguin population vis-à-vis the effects of the tariffs on their krill exports.
When we joke about ready, fire, aim… Our southern neighbors have just fired. They weren’t ready and there was absolutely not thought given to aiming. These tariffs will hurt working class families, they will hurt workers, they have already damaged industries and relationships with the U.S. For UAW to stand by and say they support tariffs because it’ll bring manufacturing jobs back to America, is ignorant, it is short-sighted, and it goes against most things unions stand for.
Who profits, and how?
The only people who can benefit from this economic uncertainty are people who have a high tolerance for risk and how a lot of disposable income… multi-billionaires who now find themselves involved with a government which can affect global markets on the whim of an unstable senior citizen who puts his needs above all else. If you have a large financial portfolio and you know tariffs will be imposed against most countries across the world, except for your new allies, Russia and Belarus, you start selling your stocks and start short-selling stocks, knowing full well the valuation will drop following the announcement.
For example, let’s look at Tesla Inc. just a few months ago on December 17, 2024, Musk was riding a high, being Trump’s right-hand man. Shares skyrocketed to a high of $479.86. But you’ve been talking with your friend, and you know what’s coming. You’ve got a couple billion to spare, so let’s say you decide to short a million shares of TSLA. Shorting means you borrow the shares to sell. So, you borrow the million shares, sell them and profit $479,860,000. But remember you’ll have to repay back those shares you borrowed. For the next few months, you throw yourself wholeheartedly into your new consultant venture, you make numerous unpopular decisions, and your investors and the general public turn on you, and your companies, primarily Tesla Inc.
March 10, 2025, rolls around and TSLA shares are now selling at $222.15, and you tell yourself that’s pretty good, so you buy a million TSLA shares to return those shares you borrowed. Cost: $222,150,000.00, netting you a profit of $257.7 million. And while you’re at the bottom, it’s a good time to buy back some stock as it rises following your departure from politics (which is rumored to be happening), perhaps your resignation from CEO and a few more surprise announcements. While there is no proof of this, you can bet some people have profited from this, and it is not the working-class families living paycheck-to-paycheck.
What does the future have in store?
Americans have long held the belief that their country is the greatest in the world and that is to be applauded. Patriotism is noble, you should love your country and your countrymen. If you’ve never lived anywhere else, enjoyed universal healthcare, low crime rates or better than a fifty-fifty chance of dying as a result gun violence, then sure, how would you know your country’s not the greatest in the world? Their Patriotism gives them a sense of entitlement that borders on toxicity and closes in on absurd.
Many unions do not support UAW’s view on tariffs. While we want strong, well-paid, working-class union jobs, we do not want them at the cost of our siblings’ jobs. We do not wish ill on our comrades so that we can benefit. Unions are stronger by working together in solidarity. When one union goes against the rest, it creates animosity and resentment, especially when the cause isn’t just.
I’m surprised UAW isn’t better informed on the consequences. Already their members have started losing their jobs. Stellantis announced it was temporarily laying off 900 workers at five facilities in the U.S. If Shawn Fain, president of UAW, thinks this is the temporary pain for long term gain, he has much to learn about politics and economics. This is the start. Many more will follow.
The Big Three (Stellantis, General Motors and Ford) have factories located throughout Canada, the U.S. and Mexico. Billions of dollars invested. Their business strategies are mapped out years, if not decades, in advance. They cannot centralize their manufacturing in one country over the daily whims of an autocrat. Their best bet is to shutdown and wait it out. They have the money to wait. And in the meantime, the cost of their vehicles goes up. Supply and demand. Less supply, more demand, higher prices. Once the cost of a brand-new Ford F-150 goes up, do you really think it’ll ever come down? The bar goes up, rarely down.
Americans are now seeing of what Canadians are made, and it’s not maple syrup and good manners; with travel to the U.S. plummeting, American alcohol being removed from the shelves, and “buy Canadian” or at the very least, from any country not the U.S. is encouraged everywhere. Do you think that if the Big Three pull up shop and move solely to the U.S. that Canadians will continue to buy from them? No. What you’ll see is an increase in sales of European and Asian cars in Canada.
UAW believes that the Canada-United States-Mexico Agreement (CUSMA) is bad and that it negatively affects them. It’s possible, I’m no expert on this agreement. But Trump and his son-in-law were the ones who negotiated it. If there’s any shortcomings, it’s because of his business savviness and economic prowess. It’s important to note that CUSMA is up for renegotiation in 2026, and this is their opportunity to renegotiate any shortcomings at that time.
Unions stick together. The word “union” says it all, it is a joining of multiple individuals to work together and giving them a collective voice to fight and achieve what they couldn’t achieve individually. Together we are stronger. There’s a very real chance that next time UAW is on strike or in a position they could really use the help of other unions, that they’ll be left alone. As for unions, we are better than that. Though they may not deserve it, we will be standing with them in solidarity!