Supports for sectors affected by U.S. tariffs
Overview
On September 5, 2025, Prime Minister Mark Carney announced a significant policy response to address trade uncertainty and strengthen the foundations of Canada’s economy to better respond to shocks going forward. The announcement was made as unemployment reached 7.1%, and comes on the heels of the launch of the Major Projects Office, fulfilling a signature commitment under Bill C-5.
What follows is a brief memo summarizing the new measures and insights gained from the announcement.
New measures to protect, build, and transform strategic industries
On September 5, 2025, Prime Minister Mark Carney announced a significant policy response to address trade uncertainty and strengthen the foundations of Canada’s economy to better respond to shocks going forward. The announcement was made as unemployment reached 7.1%, and comes on the heels of the launch of the Major Projects Office, fulfilling a signature commitment under Bill C-5.
What follows is a brief memo summarizing the new measures and insights gained from the announcement.
Labour and Workforce Supports
Employer-based training and targeted outreach to workers
Auto-enroll new EI claimants to job-matching platforms
Leverage AI to help Canadians find training courses
Launch sector alliances between industries, unions, and government to coordinate recruiting and re-training efforts
Extend EI for long-tenured workers (65 weeks) and waive the one-week waiting period
$5 billion Strategic Response Fund
3 objectives: to help business pivot to new markets, help re-train and retain workers, make businesses globally competitive (design of new products, re-tooling plants, offsetting costs to access new markets)
Open to all sectors
Buy-Canadian Policy
Will move from "best efforts" to "clear obligation" to do so
Will require local content and purchases from trusted partners *when Canadian suppliers are "truly unavailable" – requiring decisions to be approved by Ministers
Applies to all federal departments, agencies and crown corporations
Red tape reduction and simplification of access to come
Liquidity Relief for Businesses
To be implemented immediately
BDC will increase loans for SMEs (from $2 to $5M)
Large Enterprise Tariff Loan Facility will provide flexible financing at scale, with low interest and long maturity
Protecting Agriculture and Seafood Industries
(To support Canola) Introduction of new biofuel production incentive - providing more than $370 million to assist domestic producers and help restructure value chains
Targeted amendments to Clean Fuel Regulations to spur the development of a vibrant biofuel industry
Increase loan limits for Canola producers to $500,000
Regional Tariff Response Initiative
Increasing the program for tariff support for SMEs from $450M to $1B, and extending reimbursement timelines to 9 years, while introducing new non-reimbursable contributions of up to $1 million
Electric Vehicle Sales Mandates
Remove the 2026 EV sales mandate
Launch of a 60-day review of EV standard (immediate) and review options to bring new and more affordable EVs to Canadians
Additional Insights
The PM continues to evade comment on the tariff on Chinese EVs.
The government will keep the industrial carbon price at the same level
The government will unveil a Climate Competitiveness Strategy encompassing measures to get emissions down across the economy - including a review of items such as EV mandates, clean fuel standards, investment tax credits, and trade policy
Pursuing sector-specific trade deals with the US (recognizing cross-border interdependence), while preparing for the CUSMA review next year
New sanctions are being prepared by allies against Russia to advance peace talks
The government is looking at adjustments across all classes of immigrants
The government will soon launch Build Canada Homes to double the pace of home building over the next 10 years
This month, Canada begins negotiations on the new trade and defence partnership with Europe
