The Liberal government is allocating $7.5 billion to aid workers and businesses following the breakdown of trade discussions with the Trump administration. This move comes in response to the U.S. president imposing 50% tariffs on $27.6 billion worth of Canadian goods.
Finance Minister François-Philippe Champagne and other officials revealed the plan on Tuesday, which includes matching the U.S. tariffs dollar for dollar by imposing tariffs on $27.6 billion of equivalent U.S. products. The government aims to assist workers, businesses, and industries during these challenging times.
The support package, in addition to the previous $25 billion in tariff relief over the past 18 months, focuses on aiding workers and small- to medium-sized enterprises nationwide.
Under the support initiative, $3.5 billion of the total funding will be directed to a rapid response program for workers and employers. This will extend existing Employment Insurance (EI) benefits, such as waiving the waiting period and offering additional weeks of support for eligible employees.
Furthermore, new measures will allow voluntarily unemployed workers to collect EI without penalties and facilitate connections between job seekers and major projects. Employers will receive up to $1,000 per employee to cover training costs for EI work-sharing programs.
The government is also investing $2 billion in the Canada Strong Diversification Fund to support companies impacted by tariffs. The Large Enterprise Tariff Loan facility will see extended repayment periods to assist eligible firms.
Additionally, medium-sized enterprises can access $1.5 billion through regional development agencies, with enhanced funding opportunities for grants and interest-free loans. The Business Development Bank of Canada will offer liquidity support, including interest-only payments for affected businesses.
Canada’s retaliatory tariffs target goods previously singled out by the Trump administration, aligning the tariff rates with those imposed by the U.S. The strategy aims to safeguard Canadian industries and promote domestic alternatives.
Prime Minister Mark Carney held discussions with opposition leaders to coordinate a unified response to the escalating tariffs. Opposition parties expressed varying opinions on the government’s actions, with calls for additional economic measures.
Overall, the government’s comprehensive support plan intends to mitigate the impact of tariffs on Canadian workers and businesses while fostering economic resilience.
