The federal government will invest $5 billion to help automotive firms and other tariff-affected sectors adapt to trade disruptions, the minister responsible for small business announced on Sept. 26 in Windsor, Ont.
Rechie Valdez, minister of women and gender equality and secretary of state for small business and tourism, outlined the measures at Unifor Local 444. The Strategic Response Fund aims to help companies manage cash flow, invest in new equipment and find new markets, according to the government.
The announcement comes as trade tensions continue to affect Canada’s automotive sector, which is one of the country’s largest manufacturing industries.
Training and income support for workers
The government will spend $450 million on a reskilling package to train 50,000 workers through employer-based programs, short courses and career counselling, according to the announcement. Workers can access financial assistance while training.
Starting Oct. 12, 2025, with retroactive coverage to June 15, 2025, long-tenured workers will be eligible for 20 extra weeks of employment insurance, bringing the total to 65 weeks. The government expects this to support about 190,000 long-tenured workers.
The government will also extend temporary EI measures to April 11, 2026, including the suspension of separation-payment rules and waiver of the one-week waiting period. These extensions are expected to support an additional 700,000 claimants, according to the government.
The government will invest $382 million to create workforce alliances that bring together employers, unions and industry groups. A new Sectoral Workforce Investment Fund will support projects tailored to local job markets, according to the announcement.
Support for automotive businesses
The Strategic Response Fund will provide $5 billion to firms in sectors affected by tariffs, including automotive, steel, forestry and aluminum, according to the government. The fund will support activities from research and development to large-scale capital investments.
The government will increase funding for the Regional Tariff Response Initiative from $450 million to $1 billion over three years. Small and medium-sized enterprises, including automotive parts suppliers, can access non-repayable contributions of up to $1 million, with larger investments available for key regions such as Windsor, according to the announcement.
The Business Development Bank of Canada will increase its maximum loan size for SMEs from $2 million to $5 million. The government will also offer more flexible financing to larger firms through the Large Enterprise Tariff Loan Facility.
Windsor’s automotive workforce
Windsor-Essex’s automotive sector employs approximately 24,000 workers, with over 60 per cent involved in vehicle assembly and parts manufacturing, according to the government. Nearly 98 per cent of the region’s automotive firms are considered small to medium-sized enterprises.
“When tariffs hit, families feel it at the kitchen table and workers feel it on the shop floor,” Valdez said in a statement. “Our government’s new measures will secure jobs, protect incomes, and expand training so workers can build stronger careers.”
The measures are part of a broader federal response to tariffs announced by Prime Minister Mark Carney.
