Trade War: Impacts on Durham Region’s Local Economy

Promotional graphic for a Durham Workforce Authority blog titled “Trade War: Impacts on the Local Economy,” featuring a cargo ship, shipping containers and port cranes with a red and blue overlay.

The latest round of U.S. tariffs will have an impact on Durham Region. In August 2026, the United States expanded tariffs to cover hundreds of additional products, creating new uncertainty for businesses, workers and industries connected to cross-border trade.

For Durham Region, several sectors may be particularly affected.

Manufacturing & Industrial Products

Construction & Building Materials

Agriculture & Food

Consumer Products

Impacted products include: Impacted products include: Impacted products include: Impacted products include:
  • Electronics
  • Machinery
  • Industrial equipment
  • Paper products
  • Textiles
  • Plastics
  • Cement
  • Plywood
  • Building materials
  • Wood products
  • Fabricated metal products
  • Dairy products
  • Honey
  • Alcohol and wine
  • Furniture
  • Clothing and apparel

Short-Term Impact: The Next 6–12 Months

The effects of tariffs and ongoing trade uncertainty may be felt across Durham Region’s economy and workforce.

In the short term, we may see:

  • Increased uncertainty for manufacturers and other trade-exposed businesses
  • Employers delaying hiring, investment or expansion decisions
  • Impacts on machine shops, logistics firms, engineering services, warehousing and transportation companies
  • Increased anxiety among workers and the potential for layoffs or reduced hours

However, the picture is not entirely negative.

Opportunities in Durham’s Economy

While tariffs create challenges for some sectors, Durham Region also has areas of economic strength that could provide opportunities for workers and businesses.

Nuclear Energy

Durham Region is home to one of Canada’s largest nuclear energy sectors, supported by long-term infrastructure investments and an established network of employers and suppliers.

Efforts to strengthen Canadian supply chains and increase domestic manufacturing capacity could create additional opportunities within the nuclear and energy sectors.

Healthcare

Durham Region continues to need Personal Support Workers and other healthcare professionals. For workers considering a career change, healthcare offers opportunities in a sector with ongoing demand.

Defence & Advanced Manufacturing

Canadian governments are increasingly emphasizing domestic procurement and more resilient supply chains. This could create opportunities for local manufacturers to diversify, pursue new markets and reduce their reliance on U.S.-dependent supply chains.

Supporting Durham’s Workforce Through Trade Uncertainty

Durham Region is positioned to help workers respond to these economic changes through Ontario’s Skills Advance Ontario (SAO) program.

Skills Advance Ontario is a sector-based workforce development program that brings together employers, employment services and training organizations to respond to changing labour market needs.

The program helps jobseekers and workers develop the skills needed to pursue new career opportunities, including entry-level, mid-skilled and higher-skilled roles. It also helps employers access and retain the skilled workforce they need.

In Durham Region, the Durham Workforce Authority (DWA) has received SAO funding to support workers transitioning into new career opportunities, with training pathways focused on two sectors with strong workforce demand: nuclear energy and healthcare.

Through the DWA’s SAO Career Training Program, eligible participants can access free training, career support and connections to employment services.

For workers who have been laid off, are working reduced hours or have been affected by changes in their industry, this program can provide a pathway toward a new career.

Learn more about the Skills Advance Ontario Career Training Program and find out if you may be eligible. 

About the Durham Workforce Authority

The Durham Workforce Authority (DWA) is a leading source of local labour market information and works to support the development and maintenance of a strong, sustainable workforce in Durham Region.

The DWA produces custom labour market research and an annual Local Labour Market Plan, while providing information and analysis on:

  • Changes in Durham Region’s demographics
  • Migration trends into and out of the region
  • Educational attainment of Durham residents
  • Changes in the number and size of local employers
  • Industry trends using North American Industry Classification System (NAICS) data
  • Local job postings, occupations, wages, skills and hiring trends through Jobs First Durham

Through labour market research, partnerships and workforce development initiatives, the DWA helps employers, service providers, educators, governments and jobseekers better understand Durham Region’s changing labour market.

Written by: Heather McMillan, Executive Director, Durham Workforce Authority

Heather’s expertise is developing strong local community labour markets and conducting industry research supported by innovative projects. Heather is a Toronto Sector Skills Academy Metcalf Fellow and was recently awarded her Certified Workforce Development Professional (CWDP) certification from the National Association of Workforce Development Professionals.