Tariff Talk: What U.S. Trade Policy Could Mean for DEI in Canada

Given all the conversation around Trump’s tariff plans, it’s time to ask a critical question:

Tariffs are often framed as an economic issue, but their ripple effects stretch far beyond trade and supply chains. As Canadian businesses and public institutions brace for financial pressure, DEI programs could quietly slide to the back burner. 

According to The Equity Imperative, a report by Deloitte, economic uncertainty threatens the sustainability of DEI—especially when those efforts aren’t fully integrated into business strategy.

Here’s what that might look like:

Economic Pressure on Businesses

Industries that have been slower to adopt DEI may deprioritize it even further during economic stress.

Canadian companies hit with U.S. tariffs—especially in key sectors like manufacturing, energy, and agriculture—they may:

• Reallocate funding away from DEI initiatives

• Slow or pause hiring, especially in diverse talent pipelines

Reduced Government & Institutional Spending

Economic slowdowns often hit public institutions first. If trade pressure from tariffs trickles down:

• Colleges, universities, and public agencies could see DEI funding reduced

• Inclusive hiring programs and staff training may be delayed or canceled

Political & Cultural Spillover

A U.S. administration that rolls back DEI or “woke” policies could influence the cultural climate in Canada:

• Polarization could make organizations hesitant to take public stances

• Corporate priorities may shift away from inclusion to avoid controversy

Workplace Climate

Tough times tend to narrow focus to immediate survival. That mindset can have long-term consequences:

• Strategic DEI planning may stall

• Leadership pipelines may lack diverse representation

• Employee mental health and belonging initiatives may be scaled back

Big Pressure Creates Big Opportunity

Yes, financial pressure may lead to hard choices—but this is also when inclusive leadership can shine. Companies that stay committed to DEI during uncertainty often:

• Build stronger, more adaptive teams

• Retain employee trust and morale

• Outperform peers over time

McKinsey’s research repeatedly shows that diversity isn’t just good ethics—it’s smart business.

In challenging times, it’s not about whether DEI is affordable. It’s about whether you can afford to ignore it.

The Take 💡

Trump’s tariff strategy could bring real challenges for Canadian companies and institutions. But it’s also a stress test—for our values, leadership, and priorities.

Economics, inclusion, and corporate and political agendas aren’t just overlapping—they’re deeply interconnected, now more than ever.

With the April 28 Canadian election approaching, the stakes are high. Tariffs and the shifting political climate remind us that company culture and politics are no longer separate conversations.

Elbows up.

Diversity and inclusion, always.

Shauna

👋🏽 I’m Shauna Cole. Founder of hirediverse.ca, Canada’s inclusive job board.

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