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:
Feds announce 'dollar-for-dollar' counter-tariffs on billions in U.S. imports
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).
