Proposed Aid Initiatives by Federal and Provincial Governments in Response to US Tariffs

The decision by U.S. President Donald Trump to impose tariffs on Canadian imports has prompted Prime Minister Justin Trudeau and several premiers to take action in support of Canadian companies and their employees.

Trump put 25 percent tariffs on most Canadian products and 10 percent on energy imports on March 4, along with a one-month pause on auto tariffs. In response, Canada implemented retaliatory tariffs on $30 billion worth of American goods, and plans to add an additional $125 billion in tariffs if U.S. tariffs remain in place.

Ottawa and the provinces have outlined plans to assist both industries and workers in dealing with the ramifications of the trade war.

Below are the measures that have been promised:

Federal

In January, Ottawa committed to using revenues from counter-tariffs on the U.S. to support businesses and workers affected by American tariffs on Canadian goods. Now that the tariffs have taken effect, Prime Minister Justin Trudeau has stated that the government will use all available resources to help Canadian workers and businesses endure this challenging time.

The government is considering expanding employment insurance benefits and providing direct support to businesses impacted by tariffs, Trudeau announced during a March 4 press conference.

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Trudeau emphasized the importance of finding solutions to remove tariffs on both sides of the border quickly to minimize the impact.

Ontario

Premier Doug Ford has committed $40 billion to support industries and workers affected by U.S. tariffs on their businesses and employment.

A significant portion of this support will come from the $5 billion Protect Ontario Account, which aims to assist large-scale industrial job creators facing operational challenges due to tariffs, along with providing financial relief to maintain jobs for workers.

Ontario will also allocate up to $40 million for the Trade-Impacted Communities Program to help municipalities and communities dealing with economic hardships from the tariffs.

Furthermore, the premier has promised tax relief for business owners, including a $10 billion financial assistance package through a deferment of provincial business taxes and additional relief measures.

Ford mentioned the possibility of offering loans as part of the support initiative and highlighted the creation of new jobs through infrastructure projects to boost the economy.

Quebec

Quebec plans to provide up to $50 million in liquidity loans to assist local businesses vulnerable to U.S. tariffs in diversifying their trade partners beyond the United States.

Additionally, Quebec is focusing on infrastructure projects and collaboration with Hydro Quebec to create more job opportunities.

British Columbia

The B.C. government intends to assist individuals affected by the tariffs and help companies explore new export markets for their products, according to Premier David Eby.

Eby emphasized that the province will ensure federal assistance reaches those most in need and will step in to address any gaps not covered by federal support.

One of the government’s priorities is to stimulate economic growth by accelerating major projects to create jobs and prosperity across the province.

Alberta

Premier Danielle Smith announced her commitment to advocating for the removal of provincial trade barriers and promoting the construction of pipelines, LNG facilities, and mines nationwide.

She assured that Alberta would prioritize purchasing goods and services from local and Canadian companies and those from countries with reciprocal free trade agreements.

Saskatchewan

Premier Scott Moe is currently determining the government’s response to the tariffs.

Moe mentioned that his cabinet is evaluating options, but no decisions have been made at this time.

Manitoba

Premier Wab Kinew announced tax deferrals for businesses impacted by U.S. tariffs to provide temporary financial relief.

The deferral encompasses health and post-secondary levies, along with the retail sales tax, and will be reevaluated after three months.

Nova Scotia

Nova Scotia has established a contingency fund in its budget to mitigate the impact of tariffs for those most affected, according to Premier Tim Houston.

New Brunswick

Premier Susan Holt unveiled a support package to assist heavily impacted businesses and individuals in response to the tariffs.

Furthermore, a contingency fund will aid affected communities and a labor market support program will offer assistance to individuals facing employment challenges due to the tariffs.

Newfoundland and Labrador

Premier Andrew Furey has not yet announced specific support measures but emphasized collaboration with various stakeholders to tackle the tariff impact.

Prince Edward Island

Premier Rob Lantz disclosed plans to introduce enhanced initiatives to support local businesses during the initial phase of the trade dispute.

Actions include offering non-repayable assistance to affected companies, a tariff working capital program, and providing loans to sustain operations and protect jobs.

Businesses approved for loans will only pay interest in the first year. The province also intends to double provincial trade missions and assist export companies participating in these missions.