Prime Minister Mark Carney announced a comprehensive package of measures Thursday to help Canadian businesses and workers navigate U.S. trade disruptions, including a $5-billion Strategic Response Fund and programs to retrain 50,000 workers.
The initiatives respond to what the government calls fundamental changes in U.S. trading relationships that are displacing workers, disrupting supply chains and forcing companies to rethink their sourcing strategies, according to a government announcement.
“We cannot control what other nations do. We can control what we give ourselves – what we build for ourselves,” said Carney. “Canada is building the strongest economy in the G7, one that is less reliant on foreign powers and more resilient in the face of global shocks.”
Worker retraining and employment support
The government will invest $450 million over three years to retrain and upskill up to 50,000 workers through Labour Market Development Agreements with provinces and territories, according to the announcement. The program targets mid-career workers affected by U.S. tariffs and underrepresented groups including persons with disabilities, women and Indigenous Peoples.
Long-tenured workers will receive 20 extra weeks of Employment Insurance benefits, up to a maximum of 65 weeks, starting Oct. 12. The $1.6-billion investment over five years is expected to support about 190,000 workers, the government said.
The government will also invest $50 million over five years to modernize online job tools, including integrating artificial intelligence on the Job Bank platform and launching a national online training platform.
Strategic Response Fund priorities
The $5-billion Strategic Response Fund will prioritize large-scale projects in highly trade-exposed sectors facing significant revenue loss or job cuts, according to the government. Priority will go to projects that help companies develop capacity to meet Canadian market demands and secure new export markets.
The fund replaces the Strategic Innovation Fund but will continue supporting innovation projects, the government said. Existing projects will not be stopped or deprioritized.
Finance Minister François-Philippe Champagne said the measures will ensure “businesses have the liquidity to adapt, workers have the skills to lead, and our economy is built to thrive in a more self-reliant, diversified future.”
Buy Canadian procurement policy
The government will introduce a new Buy Canadian Policy by November requiring federal departments to prioritize Canadian suppliers and products in all federal spending. The policy initially covers Canadian steel and softwood lumber with plans to expand to additional materials.
When Canadian suppliers are unavailable, new local content requirements will ensure strategic procurements still use Canadian content where possible, according to the announcement. The approach will extend to $70 billion in infrastructure spending, grants, contributions and loans.
Business liquidity measures
Small and medium-sized enterprises can access increased Business Development Bank of Canada loans up to $5 million, raised from the current $2-million limit. The Large Enterprise Tariff Loan Facility will offer more flexible financing with lower interest rates and longer maturities.
The automotive sector receives immediate relief through exemptions from 2026 Electric Vehicle Availability Standards requirements. The government will launch a 60-day review to provide additional flexibilities and reduce costs for the sector.
Agriculture and regional support
Canola and agriculture producers will benefit from more than $370 million over two years in biofuel production incentives to address competitiveness challenges from U.S. policy changes. The interest-free limit for canola advances through the Advance Payments Program will temporarily increase to $500,000 for 2025 and 2026.
The Regional Tariff Response Initiative expands from $450 million to $1 billion over three years, providing non-repayable contributions up to $1 million to small and medium-sized businesses in all sectors impacted by tariffs.
Industry Minister Mélanie Joly said the announcement represents “another big step in our mission to build one Canadian economy, strengthen our global competitiveness, and diversify our trade.”
