Prime Minister, Mark Carney announced Friday a series of new, strategic measures for workers and businesses in those sectors most impacted by U.S. tariffs and trade disruptions.

“These initiatives will help workers acquire new skills and businesses retool their production and diversify their products, while spurring more domestic demand for Canadian businesses. As we build the economy of the future, we’re ensuring workers and industries can bridge to seize its opportunities,” said the government.

“The global trade landscape is rapidly changing, as the United States fundamentally transforms all of its trading relationships. The effect is profound – displacing workers, disrupting supply chains, forcing companies to rethink where they source their materials and products, and causing uncertainty that is curbing investment. Canada has the best deal of any U.S. trading partner – yet we cannot rely on our most important trade relationship as we once did. We must build our strength at home.

“Canada’s new government is building a new industrial strategy to meet this moment. This will transform our economy – from one of reliance on specific trade partners to one that is more resilient to global shocks, built on the solid foundation of strong Canadian industries, and bolstered by diverse international trade partners.”

Building on previously announced measures to help transform the Canadian steel and softwood lumber industries, the following new initiatives were announced on Friday:

• A strong, confident workforce: The government will introduce a new reskilling package for up to 50,000 workers, make Employment Insurance more flexible and with extended benefits, and launch a new digital jobs and training platform with private-sector partners to connect Canadians more quickly to careers.
• A new Strategic Response Fund: The government will invest $5 billion through a new fund with flexible terms to help firms in all sectors impacted by tariffs adapt, diversify, and grow, with support provided to industries by new Workforce Alliances to align training and workforce needs.
• A new Buy Canadian Policy: The government will introduce a new policy to ensure the federal government buys from Canadian suppliers, require local content when domestic suppliers are unavailable, extend this approach to all federal funding streams and Crown corporations, and provide a roadmap for provinces and municipalities to apply similar standards to their own procurement.
• Immediate liquidity relief: The government will expand Business Development Bank of Canada loans for small and medium-sized enterprises (SMEs) to $5 million, provide more flexible financing through the Large Enterprise Tariff Loan Facility, and give the auto sector flexibility by waiving 2026 model year vehicles from Electric Vehicle Availability Standard requirements and by launching an immediate 60-day review to reduce costs.
• Assisting Canada’s canola and agriculture producers: The government will introduce a new biofuel production incentive, with over $370 million for domestic producers to address immediate competitiveness challenges, amend Clean Fuel Regulations to support the domestic biofuels industry, temporarily increase the Advance Payments Program interest-free limit to $500,000 for canola advances, and provide increased funding for the AgriMarketing Program to support diversification into new markets of agricultural products.
• Regional Tariff Response Initiative: The government will expand support to SMEs to $1 billion over three years, with flexible terms, and increase new non-repayable contributions to eligible businesses impacted by tariffs across all affected sectors, including agricultural and seafood.

The full list of measures is available here.

“We cannot control what other nations do. We can control what we give ourselves – what we build for ourselves. 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. In the face of uncertainty around the world, we are ensuring that our workers and businesses will prosper by building Canada’s strength at home,” said Carney.

Bea Bruske, President of the Canadian Labour Congress, released the following statement:

“Canada’s unions are ready to work with government to make sure today’s announcement delivers for workers and for our economy. Ottawa’s strategy must prioritize good jobs and better lives for workers their families. To succeed, we need we need a clear industrial strategy that coordinates across industries, regions, and different levels of government while bringing workers into the heart of decision-making. 

“We want to work together to ensure that trade diversification efforts are not just about opening new markets, but about building the infrastructure and capacity here at home to succeed. That means major federal investment in warehousing, rail, ports, energy, and logistics, all delivered with prevailing wage requirements and strong labour standards. It also means supporting decarbonization so that Canadian exports can reach Europe and other markets without being penalized by carbon border tariffs.

“The new ‘Buy Canada’ plan could become a powerful tool for strengthening our economy and creating demand for Canadian products. But we know from past experience that procurement rules only succeed if they are designed to prioritize creating and protecting good, unionized jobs. Otherwise, public money will flow into corporations and private hands without securing long-term benefits for communities and working people.

“Workers welcome enhancements to Employment Insurance — this is a great move that if done right is an essential piece of building a resilient economy. As government moves ahead, it will be important to ensure these improvements cover everyone who needs them, including women, young people, and those in precarious or non-standard jobs.

“There are always ways to find savings, but governments must remember that economic strength also depends on strong public services. Canadians need access to health care, child care, and housing that help bring down costs for families. Workers need confidence that Employment Insurance, skills training, and supports will be there when they are needed most. These investments make the economy more resilient and help families weather the shocks that tariffs, trade disruptions, and corporate decisions can bring. With unemployment rising and the job market deteriorating fast, now is the worst possible time for austerity and severe budget cuts to social programs and public-service jobs.

“While today’s announcement is welcome, there are still some gaps that need to be addressed. For steel and aluminum producers, the absence of strengthened tariff rate quotas is a missed opportunity. Without this breathing room, workers and employers alike will struggle to adapt to fast-changing market conditions. On electric vehicles, relief for automakers must be tied to clear commitments: investments in Canadian production, guarantees for Canadian jobs, and support for the transition measures that unions are calling for. Canadians expect no less when billions of dollars in public funds are being put on the table.

“The funding programs and worker supports announced today are important, but they will only succeed if they look beyond short-term reskilling. We want to ensure these tools prioritize upskilling, retention, and pathways to unionization so that workers can build stable, long-term careers in growing industries.

“Canada’s unions will continue to push for a bold and comprehensive plan — one that connects today’s measures into a coherent industrial strategy, ensures public investments build Canadian capacity, and guarantees that the payback is measured in secure union jobs. We look forward to working with government to make that vision a reality, because that’s the only way to secure Canada’s future in a turbulent global economy.”

Canadian Manufacturers & Exporters (CME) said it welcomes the announcements by the Prime Minister to support Canada’s industrial economy. Manufacturing has been among the hardest hit by U.S. tariff actions, and these measures represent a necessary step toward stabilizing the sector. As a strategic industry that employs over 1.8 million well-paid workers across the country, manufacturing is key driver or exports, and innovation and productivity – and is essential to Canada’s long-term economic resilience and sovereignty, it said.

“CME applauds the federal commitment to retrain 50,000 workers. To succeed, this program must prioritize employer-led, on-the-job training and reduce barriers for manufacturers seeking to retain and upskill their workforce. CME has extensive experience delivering sector-based training solutions and currently partners with manufacturers nationwide to build practical, work-integrated training programs that meet real-world needs. We welcome the opportunity to work with the federal government to deliver urgently needed support to Canadian workers,” said the organization.

“The $5 billion Strategic Response Fund offers a promising mechanism to help manufacturers retool, diversify, and stay globally competitive. But success will hinge on speed and flexibility. This fund cannot be weighed down by red tape and lengthy approvals. CME calls on the government to deliver fast, practical assistance that strengthens domestic production and supply chains.

“CME has long urged the federal government to pursue a more robust Buy Canadian policy. We are cautiously optimistic about the new commitment requiring federal agencies and Crown corporations to prioritize Canadian-made goods. However, we recognize there are significant barriers to creating a truly national procurement policy. If implemented effectively, this initiative could be a critical step toward bolstering domestic supply chains, building industrial resilience, and supporting Canadian jobs. We look forward to working with government to ensure the policy is rolled out efficiently and with minimal administrative burden.”

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