Government of Canada announces support measures for Canadian businesses impacted by U.S. tariffs

From the Government of Canada: “Earlier this week, the United States administration imposed unjustified tariffs on Canada, disrupting a successful trading partnership and raising costs for Americans and Canadians alike. As the federal government, we will use every tool at our disposal so Canadian businesses and workers can weather this storm. We will defend Canadian jobs.

“To support our businesses and ensure they have the liquidity they need through this turbulent time, we will be:

  • Launching the Trade Impact Program through Export Development Canada. The program will deploy $5 billion over two years, starting this year, to help exporters reach new markets for Canadian products and help companies navigate the economic challenges imposed by the tariffs, including losses from non-payment, currency fluctuations, lack of access to cash flows, and barriers to expansion.
  • Making $500 million in favourably priced loans available through the Business Development Bank of Canada to support impacted businesses in sectors directly targeted by tariffs, as well as companies in their supply chains. Businesses will also benefit from advisory services in areas such as financial management and market diversification.
  • Providing $1 billion in new financing through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry. This lending offer will help address cash flow challenges so that businesses can adjust to a new operating environment and continue to supply the high-quality agricultural and food products that Canadians rely on.

“Along with supporting businesses, we are also introducing temporary flexibilities to the EI Work-Sharing Program to increase access and maximum agreement duration. The Work-Sharing Program provides EI benefits to employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their employer’s control. This helps employers retain experienced workers and avoid layoffs and helps workers maintain their employment and skills while supplementing the reduced wages with EI benefits.”

Read more: Read the full release from the Government of Canada.

Updates from the Government of Nova Scotia are expected to follow and they have issued the following message in response to these Federal measures:

“Nova Scotia is doing everything we can along with our federal and provincial colleagues to counter these actions, including looking at ways to make the Province more self-reliant, removing interprovincial trade barriers, and supporting local goods and services with a “Nova Scotia Loyal” mindset. As part of Budget 2025-26, the Province established a $200 million contingency fund which will be used to help support Nova Scotians.”

Learn more: Find more related news and resources on CANS Canada-U.S. Tariff Info Centre.