Prime Minister Carney Unveils Comprehensive Measures to Safeguard, Strengthen, and Transform Strategic Canadian Industries

Toronto (Rajeev Sharma): The global trade landscape is undergoing a profound transformation, driven by the United States’ fundamental overhaul of its trading relationships. This shift is having far-reaching consequences, including job displacement, supply chain disruptions, and heightened uncertainty that is deterring investment. Despite Canada having the most advantageous trade agreement with the U.S., our nation can no longer rely solely on this partnership as it once did. Therefore, it is imperative that we fortify our domestic economy. To this end, Canada’s new government is developing a novel industrial strategy tailored to address the challenges of this new era. This forward-thinking approach will enable our economy to evolve from one characterized by reliance on specific trade partners to one that is more resilient in the face of global economic shocks, founded on the bedrock of robust Canadian industries, and bolstered by a diverse array of international trade partners.
To achieve these objectives, Prime Minister Mark Carney announced a series of strategic measures today, designed to support workers and businesses in sectors most affected by U.S. tariffs and trade disruptions. These initiatives will facilitate workers’ acquisition of new skills, enable businesses to adapt their production processes and diversify their product offerings, and stimulate domestic demand for Canadian businesses. As we construct the economy of the future, we are ensuring that workers and industries are well-equipped to capitalize on emerging opportunities.
Building upon previously announced measures aimed at transforming the Canadian steel and softwood lumber industries, the following new initiatives were unveiled today. The government will introduce a comprehensive reskilling package for up to 50,000 workers, render Employment Insurance more flexible with extended benefits, and launch a novel digital jobs and training platform in collaboration with private-sector partners to expedite Canadians’ transition into new careers. The government will allocate $5 billion through a new fund with flexible terms to support firms across all sectors impacted by tariffs, enabling them to adapt, diversify, and expand. This support will be complemented by new Workforce Alliances, which will align training and workforce needs with industry requirements.
The government will introduce a new policy mandating that the federal government prioritize procurement from Canadian suppliers, stipulate local content requirements when domestic suppliers are unavailable, extend this approach to all federal funding streams and Crown corporations, and provide a roadmap for provinces and municipalities to implement similar standards in their procurement processes. Immediate liquidity relief measures will also be implemented. The government will expand Business Development Bank of Canada loans for small and medium-sized enterprises (SMEs) to $5 million, offer more flexible financing options through the Large Enterprise Tariff Loan Facility, and provide the automotive sector with flexibility by waiving Electric Vehicle Availability Standard requirements for 2026 model year vehicles and launching an immediate 60-day review to reduce costs.
To support Canada’s canola and agriculture producers, the government will introduce a new biofuel production incentive, allocating over $370 million to domestic producers to address immediate competitiveness challenges. Additionally, the government will amend Clean Fuel Regulations to support the domestic biofuels industry, temporarily increase the Advance Payments Program interest-free limit to $500,000 for canola advances, and provide increased funding for the AgriMarketing Program to support the diversification of agricultural products into new markets.
The Regional Tariff Response Initiative will be expanded, with support for SMEs increasing to $1 billion over three years, featuring flexible terms. Furthermore, new non-repayable contributions will be made to eligible businesses impacted by tariffs across all affected sectors, including agriculture and seafood.