Days following the breakdown of trade negotiations with the Trump administration, the Canadian government is introducing a $7.5 billion aid package to assist workers and businesses in coping with the imposition of 50 percent tariffs on $27.6 billion worth of Canadian exports by the U.S. president.
Finance Minister François-Philippe Champagne, along with other ministers, revealed on Tuesday that in addition to the support for businesses, starting on September 8, the government will reciprocate the U.S. tariffs by imposing equivalent tariffs on $27.6 billion worth of comparable U.S. goods.
In a press conference held at a roofing company in Ottawa, Champagne stated, “Canada faces an unparalleled challenge, but we are prepared to confront it unitedly. We will back our workforce, industries, and businesses with all necessary means for as long as required.”
Government officials, speaking on background, explained that the new support initiative supplements the nearly $25 billion in tariff assistance provided over the past 18 months.
The assistance measures are specifically tailored to aid workers and businesses, particularly focusing on small and medium-sized enterprises nationwide.
Under the support package, the Liberal government is allocating $3.5 billion of the total funding to a rapid response program for workers and employers. This includes extensions to several Employment Insurance (EI) benefits announced back in September 2025. These extensions involve waiving the one-week waiting period for EI claims, extending EI receipt without exhausting separation payments, and granting long-tenured employees an extra 20 weeks of EI benefits.
Moreover, new measures will allow workers who voluntarily resign to claim EI benefits without penalties and facilitate the connection of unemployed individuals with projects in need of staff. Employers will also receive up to $1,000 per employee to cover training costs for EI work-sharing programs.
To further support affected companies, the government is injecting $2 billion into the Canada Strong Diversification Fund, aimed at assisting tariff-impacted firms with essential projects. Larger enterprises will benefit from enhanced flexibility through modifications to the Large Enterprise Tariff Loan facility, extending financial support to eligible companies for a longer period.
Medium-sized companies will gain access to an additional $1.5 billion in funding through regional development agencies, raising the cap on grants and offering interest-free loans to qualifying businesses.
The retaliatory tariffs will mirror those imposed by the U.S. on Canadian goods, targeting products from various industries. These tariffs are designed to safeguard Canadian industries by aligning with corresponding U.S. tariffs, focusing on products where Canadian alternatives are available.
In response to the escalating trade tensions, Prime Minister Mark Carney engaged with opposition leaders to discuss a unified approach in safeguarding Canadian interests and the economy. Opposition parties expressed varying opinions, with the NDP supporting a firm stance against the U.S., while the Conservatives called for immediate economic measures to mitigate job losses and reduce costs.
The government remains committed to supporting workers and businesses during these challenging times, emphasizing unity and proactive measures to address the impact of escalating trade disputes.