Carney unveils billions in funding, Buy Canada policy to combat Trump’s tariffs
Prime Minister Mark Carney Unveils Bold Economic Strategy to Counter Trump Tariffs
In a groundbreaking speech delivered in Mississauga, Ont., Prime Minister Mark Carney announced a series of innovative measures aimed at transforming Canada’s economy into a powerhouse capable of withstanding the trade shocks caused by the Trump administration.
Carney emphasized that the strategy is designed to provide targeted support to workers and businesses that have been most affected by President Donald Trump’s tariffs and trade disruptions. He stressed the importance of turning challenges into opportunities and expressed confidence in Canada’s ability to navigate the current economic turmoil.
One of the key components of the plan is the temporary pause of the electric vehicle (EV) mandate, a move that has been well received by the auto industry. The mandate, which requires a certain percentage of zero-emission vehicles to be sold in Canada by specific deadlines, has been waived for the 2026 model year to allow for a thorough review of the policy.
Additionally, the government has introduced a new “reskilling package” to help up to 50,000 workers access training through their employers or recruitment companies. The package includes automatic enrollment in a jobs-matching program and a ‘skills-to-job’ tool to facilitate job searches and connect individuals to training opportunities.
To assist laid-off workers in transitioning to new employment, the federal government is extending employment insurance (EI) benefits to 65 weeks for long-tenured workers, providing an additional 20 weeks of support. The one-week waiting period for EI benefits is also being waived for up to 700,000 workers.
In a strategic move to support businesses, Carney announced the creation of a $5-billion fund to help companies develop new products and explore new markets. The fund will be open to businesses across all sectors to mitigate the impacts of tariffs and promote economic growth.
Furthermore, the government’s Regional Tariff Response Initiative, initially established with $450 million in funding, will be increased to $1 billion to provide additional support to small- and medium-sized businesses affected by tariffs.
In a bid to boost domestic industries, Carney introduced a “Buy Canada” policy that requires the federal government and its agencies to prioritize Canadian suppliers in public procurement. The policy aims to stimulate the domestic economy and create long-term prosperity for Canadian businesses.
To address the cash flow challenges faced by companies impacted by U.S. tariffs, the government is increasing the maximum loan size available to small- and medium-sized enterprises through the Business Development Bank of Canada. Larger businesses will also have access to the Large Enterprise Tariff Loan Facility, which offers loans with longer terms and lower interest rates.
In addition to these measures, Carney pledged support for the agricultural and seafood sectors, which have been heavily affected by tariffs imposed by China. The government will introduce a biofuel production incentive to assist domestic producers and help them restructure their value chains. Changes to clean fuel regulations will also be implemented to promote the development of a vibrant biofuels industry in Canada.
Overall, the economic strategy outlined by Prime Minister Mark Carney represents a bold and comprehensive response to the challenges posed by the Trump administration’s trade policies. By prioritizing the needs of workers and businesses, Canada is positioning itself for long-term resilience and prosperity in the face of ongoing economic uncertainty.