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.
The Minister of Finance and Intergovernmental Affairs, Dominic LeBlanc, the Minister of Employment, Workforce Development and Labour, Steven MacKinnon, the Minister of Export Promotion, International Trade and Economic Development, Mary Ng, the Minister of Small Business, Rechie Valdez, and the Minister of Agriculture and Agri-Food, Lawrence MacAulay, today announced the first steps of new measures to protect Canadian businesses and workers.
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.
To protect our Canadian businesses from harmful takeover, the federal government also updated the Investment Canada Act Guidelines to protect Canadian companies at a time when our economy is facing unprecedented challenges. While we welcome foreign investments through an open and predictable investment climate, we must refuse foreign investments that would be harmful to our economic security.
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 partial 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.
In the weeks and months ahead, additional measures will be brought forward to support businesses and workers as needed. The federal government will continue to work closely with provinces and territories to ensure complementary supports are in place across all jurisdictions.
