The Canadian government has committed $7.5 billion to support workers and businesses as the country seeks to reduce its reliance on the U.S. market.
Canada cannot afford to wait before supporting workers and businesses affected by the escalating trade war with the United States, Jobs and Families Minister Patty Hajdu says, as the federal government rolls out $7.5 billion in measures to help Canadians weather the economic impact.
The package includes easier access to Employment Insurance for workers affected by the tariffs, as well as a range of loan programmes aimed at helping businesses manage cash-flow challenges, retain employees and adjust to changing market conditions.
Hajdu said the measures are intended to give Canadian businesses time to find new markets, products and partners while reducing their reliance on the U.S.
Prime Minister Mark Carney said that Canada is prepared to return to the negotiating table with Washington when the U.S. comes with the “right attitude.”
But Hajdu said the government could not wait for negotiations to resolve the uncertainty before preparing to support workers and employers.
She said the government was in a strong fiscal position to provide assistance and would ensure that workers who lose their jobs have access not only to Employment Insurance but also to training and opportunities to find employment in other sectors.
“The Canadian economy is still quite strong and we’re seeing a lot of activity in a variety of different sectors,” Hajdu said. “But we all know these tariffs are going to disproportionately impact various sectors and various businesses.”
Her comments came amid concerns over the potential loss of jobs as the latest round of U.S. tariffs puts additional pressure on Canadian businesses. A recent analysis by the University of Calgary estimated that Canada could lose as many as 87,000 jobs as a result of the latest tariffs.
Hajdu said some companies had already begun adjusting by seeking new markets, products and business partners, while others remained heavily dependent on the U.S. market.
“Some businesses are very small and reliant on the United States,” she said. “And if there are situations where a business just cannot keep their doors open, we want to make sure those employees are well supported.”
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Canada has also introduced retaliatory tariffs on a range of U.S. imports, a move Hajdu acknowledged could increase costs for Canadian consumers and reduce their choices.
“No one wants to impose tariffs,” she said, noting that tariffs can increase prices. However, she defended the measures as necessary to protect Canadian businesses and employers.
Hajdu urged Canadians to buy domestic products where possible, saying consumers had already been supporting Canadian businesses by choosing Canadian-made products, vacations and manufacturers. “At the end of the day, we need to make buying Canadian the most preferential for Canadians,” she said.
The minister also defended the government’s handling of negotiations with the United States after Conservative Party Leader Pierre Poilievre called on Carney to release details of what Canada had rejected during talks on Friday.
Hajdu said the terms of the proposed agreement and subsequent changes had been widely reported and that the government had consulted industry representatives, labour groups and politicians from different parties throughout the negotiations.
“We’ve been working with stakeholders. We’ve been working with industry. We’ve got labour partners. We’ve got politicians of all stripes on advisory committees,” she said. She described the negotiations as an “all-hands-on-deck moment” for Canada.
With no immediate indication that tensions with Washington will ease, Hajdu said Canada’s focus would be on helping businesses diversify their markets.
She acknowledged that finding new markets would not happen overnight but said companies across the country were already working to expand their customer base and participate in major Canadian projects.
Those opportunities include defence and infrastructure projects where Canadian companies can supply domestic products and services, she said.
“We cannot control what the president of the United States will say or do,” Hajdu said. “But what we can control is the support that we provide employers.”
She said helping businesses build new markets and strengthening demand for Canadian products formed part of the government’s broader economic plan to build a stronger economy at home.
CBC
