Days after the collapse of trade talks with the Trump administration, the Liberal government is rolling out $7.5 billion to help workers and businesses weather the new 50 per cent tariffs being imposed on $27.6 billion of Canadian goods by the U.S. president.
Finance Minister François-Philippe Champagne and other ministers announced on Tuesday that alongside the supports for businesses, starting Sept. 8 the government will match the U.S. levies dollar for dollar by tariffing $27.6 billion of comparable U.S. goods.
“This is an unprecedented challenge imposed on Canada, but Canada will meet the moment, Canadians will meet the moment, we will meet the moment together,” Champagne said at the announcement held at a roofing company in Ottawa.
“We will support our workers, our businesses and our industries with whatever it takes, for as long as it takes.”
Officials speaking earlier on background explained that the support package comes on top of the nearly $25 billion in tariff support it implemented over the past 18 months.
The measures have been designed to focus support on workers and businesses, particularly small- and medium-sized enterprises across the country, officials said.
As a part of the support package, the Liberal government is directing $3.5 billion of the $7.5-billion support funding into a rapid response initiative for workers and employers.
Part of the money will go toward expanding three changes to EI first announced in September 2025 that were set to expire Oct. 10, including:
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Two new measures being rolled out include allowing workers that have voluntarily left their jobs to collect EI without penalty, and helping connect unemployed or underemployed workers with major projects that need staff.
Employers themselves are getting up to $1,000 per employee to cover the training and administration costs of implementing EI work-sharing and retention programs.
This will enable an employer to reduce an employee’s work schedule from five days a week to two, while allowing the employee to collect EI for the other three days at 70 per cent of their income, instead of the usual 55 per cent.
“Keeping skilled workers during slow times means that businesses can retain talent, and it helps workers weather tough times for their employers,” said Minister of Jobs and Families Patty Hajdu.
The government is also investing $2 billion to create the Canada Strong Diversification Fund, which will “support tariff-impacted companies with shovel-ready projects that support ongoing capital maintenance, including medium-sized firms.”
Bigger companies will be able to enjoy more flexibility because of changes being made to the government’s Large Enterprise Tariff Loan facility (LETL).
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Announced in March 2025, the LETL provides eligible companies with 24 months of financial liquidity. Under Tuesday’s support plan, that 24-month period is being extended to 36 months and the maximum loan repayment period is being raised to 15 years from 10.
Medium-sized enterprises across the country, meanwhile, will be able to access $1.5 billion in additional funding that will be delivered through one of Canada’s seven regional development agencies.
The additional funding lifts the cap on non-repayable grants to $3 million from $1 million. Liquidity support in the form of interest-free loans of up to $2 million for qualifying businesses will also be made available.
Industry Minister Mélanie Joly said those programs would be available to businesses with more than $1 million in revenue.
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The Business Development Bank of Canada, which will have a second $500-million liquidity stream, will provide working capital support for small- and medium-sized businesses facing cash flow pressures.
Companies directly impacted by the tariffs will be eligible for loans ranging from $250,000 to $5 million, and will be allowed to make interest-only payments for 36 months, which will take them past the end of Trump’s second term.
The retaliatory tariffs will target the same goods the Trump administration singled out when it hit Canada with Section 338 and 232 tariffs. The list of the more than 700 products being hit is posted online.
U.S. President Donald Trump’s 10 to 50 per cent Section 232 tariffs were applied to steel, aluminum, copper, autos, lumber, their derivatives and certain semiconductors.
The 338 tariffs target a range of Canadian goods, from hockey sticks to alcohol to dairy, and were imposed Saturday after trade talks between the two countries broke down.
Officials explained that Canada’s tariff regime is being designed to protect industries in Canada rather than raise revenues. To do that, Canada’s tariff rate on a given product will match the U.S. tariff rate on that same product.
Ministers explained that they have strategically targeted U.S. products where Canadian-made alternatives are available.
Earlier Tuesday, Prime Minister Mark Carney held a call with federal opposition leaders to update them on his government’s response to Trump’s latest escalation of tariffs.
“The prime minister and the leaders discussed the ongoing response and underscored the importance of a united Team Canada approach as Canada works to protect jobs, build the economy and stand up for Canadian interests,” said a readout from the Prime Minister’s Office.
After the meeting Conservative Leader Pierre Poilievre issued a statement demanding Carney release the text of the rejected agreement, recall Parliament and “adopt an emergency economic action plan to save jobs and lower costs for our people.”
That plan would require the government to scrap all gas taxes until next Canada Day, exempt people who reinvest in Canada from capital gains taxes and other initiatives the Conservatives promised in their last federal election campaign.
Joly dismissed Poilievre’s demands, saying the Conservative leader has voted consistently against Liberal initiatives to help workers and businesses.
“Walk the talk, that’s what I would say to Mr. Poilievre,” Joly said.
