Mayor warns Windsor’s jobless rate could climb higher as trade tensions drag on

Windsor’s unemployment rate is the top in Canada. CTV Windsor’s Travis Fortnum investigates why.

Windsor once again holds the highest unemployment rate in Canada — and Mayor Drew Dilkens says the worst may still be ahead.

“We’re going to have to stick together,” Dilkens said.

“I can’t promise this isn’t going to get harder before it gets better, but it will get better.”

Statistics Canada reports Windsor’s jobless rate rose to 11.2 per cent in June, up from 10.8 per cent the month before.

It’s the only census metropolitan area in the country with a rate above 11 per cent.

Dilkens says the timing is no coincidence — pointing to renewed U.S. tariffs and uncertainty around cross-border trade six months into Donald Trump’s second term.

“I’ve always said Windsor is going to get hit first and we’re going to get hit the hardest,” he said.

That impact, the mayor says, is now showing up in the region’s tool, die, and mold industry — where many businesses rely on stable export volumes and long-term production planning.

“You have a lot of tool, die, and mold companies, who have a book of business that might be six months full,” Dilkens said.

“That book of business has dried up, and the order book is empty. And so, they are laying people off.”

Flavio Volpe, president of the Automotive Parts Manufacturers Association, says the trend is not unique to Windsor.

“There’s nothing specifically haunting Windsor other than the president of the United States haunting the entire sector,” he said.

Volpe says tooling firms across North America are dealing with paused investments, fewer orders and intensifying foreign competition — particularly from China.

“The Chinese are rather predatory in their pricing,” said Volpe.

“They are quoting fully finished product for less than the cost of materials here in Canada.”

Both Volpe and Dilkens say a new trade agreement between Canada and the U.S. is urgently needed to stabilize the industry and give companies the confidence to plan ahead.

“The longer that we stay with this, the worse it’s going to be,” said Volpe.

“We’re seeing volumes, export volumes reduced by a quarter, 30 per cent, 35 per cent. All of those affect everything.”

With companies holding off on investments and order books running dry, Dilkens says recovery won’t happen overnight — but believes the region is well-positioned to rebound whenever trade stabilizes.

“We’re going to make it through as a community,” he said.

“We’re not going to go down the tube because of Donald Trump.”