Canadian government to protect strategic industries amid US tariffs

Canadian Prime Minister Mark Carney announced a series of strategic measures to support workers and businesses in sectors most impacted by US tariffs and trade disruptions.

These initiatives, the government says, will help workers acquire new skills and businesses retool their production and diversify their products, while spurring more domestic demand for Canadian businesses. 

"We cannot control what other nations do. We can control what we give ourselves–what we build for ourselves," Carney said. "In the face of uncertainty around the world, we are ensuring that our workers and businesses will prosper by building Canada's strength at home."

The new strategy comes as Canada continues to adapt to the trade turmoil generated by US tariffs. The North American country currently faces a 35 percent tariff (effective August 1) on exports to its neighbor to the south. The effect is profound, the Carney Administration wrote in a press release.

"Canada has the best deal of any US trading partner," the document says, "yet we cannot rely on our most important trade relationship as we once did. We must build our strength at home."

Skills, adaptation, and industry protection

As part of Carney's new set of measures aimed at protecting Canadian industry, up to 50,000 workers will benefit from a new reskilling package, as well as increased Employment Insurance flexibility, and more extended benefits. 

Canada is also introducing a new Buy Canadian Policy to ensure the federal government buys from local suppliers and requires local content when domestic suppliers are unavailable. The initiative will also extend to all federal funding streams and Crown corporations, providing a roadmap for Canadian provinces and municipalities to apply similar standards to their own procurement.

The plan also contemplates assistance to the Canadian agricultural industry. In this regard, the government will introduce a new biofuel production incentive, with over CA$370 million for domestic producers to "address immediate competitiveness challenges". The administration also plans to amend Clean Fuel Regulations to support the domestic biofuels industry, temporarily increase the Advance Payments Program interest-free limit to CA$500,000 for canola advances, and provide increased funding for the AgriMarketing Program to support diversification into new markets of agricultural products.

"Our government understands the uncertainty and concerns many Canadians are feeling as a result of the tariffs imposed by the US," said Dominic LeBlanc, President of the King's Privy Council for Canada and Minister responsible for Canada-US Trade, Intergovernmental Affairs, and One Canadian Economy. "That is why we remain committed to continue using every tool at our disposal to support Canadians and Canadian businesses."

This new set of measures builds on previously announced initiatives supporting the Canadian steel and softwood lumber. The plan, according to the government, will help provide industries and workers with the tools they need to build a future where Canada's economy is less reliant on a single trading partner. 

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