Canada unveils measures to counter U.S. tariffs, support local businesses

Investing.com -- In response to the recent tariffs imposed by the United States administration, the Canadian federal government has announced a series of measures aimed at supporting Canadian businesses and workers. The tariffs have disrupted the longstanding trade partnership between the two nations, leading to increased costs for both American and Canadian citizens.

The new initiatives, announced by multiple Canadian ministers, are designed to protect Canadian businesses and workers. These ministers include Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs; Steven MacKinnon, Minister of Employment, Workforce Development and Labour; Mary Ng, Minister of Export Promotion, International Trade and Economic Development; Rechie Valdez, Minister of Small Business; and Lawrence MacAulay, Minister of Agriculture and Agri-Food.

The federal government will launch the Trade Impact Program through Export Development Canada, injecting $5 billion over two years to assist exporters in finding new markets for Canadian products and helping companies navigate the economic challenges posed by the tariffs. This program will focus on issues like non-payment, currency fluctuations, cash flow access, and expansion barriers.

In addition, the Business Development Bank of Canada will make $500 million in favorably priced loans available to support businesses directly targeted by the tariffs and those within their supply chains. These businesses will also have access to advisory services in areas such as financial management and market diversification.

Farm Credit Canada will provide $1 billion in new financing to alleviate financial barriers for the Canadian agriculture and food industry. This lending offer aims to address cash flow issues, enabling businesses to adjust to a new operating environment and continue to supply high-quality agricultural and food products.

To shield Canadian businesses from harmful takeovers, the federal government has updated the Investment Canada Act Guidelines. While foreign investments are still welcome, those deemed harmful to Canada's economic security will be refused.

Temporary flexibilities will be introduced to the EI Work-Sharing Program to increase access and extend the maximum agreement duration. This program provides EI benefits to employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their control.

The federal government has committed to bringing forward additional measures to support businesses and workers as needed in the coming weeks and months. They will continue to work closely with provinces and territories to ensure complementary supports are in place across all jurisdictions.