The federal government is unveiling new support measures to mitigate the impact of the U.S. trade war on Canadian workers as fears of layoffs and economic impact grow.
The announcement came moments after U.S. President Donald Trump announced he plans to put new tariffs on Canadian dairy and lumber within the coming days.
Labour Minister Steve MacKinnon announced new “temporary work-sharing measures” that will go into effect Friday, calling the trade war that Trump launched this week a moment of “maximum peril.”
A sweeping 25 per cent tariff on all Canadian goods went into effect Tuesday, before Trump announced a partial, temporary reprieve for some goods that fall under the Canada-United States-Mexico Agreement (CUSMA).
Canada’s counter-tariffs on $30 billion worth of American goods also went into effect Tuesday, with provinces issuing their own suites of measures, and will remain in place until all of Trump’s tariffs are lifted.
“In this moment of maximum peril, the likes we have never seen — from a friend and ally, no less — the federal government must stand tall and stand by fellow Canadians and stand by we will,” MacKinnon said during a press conference in Ottawa.
Under the “mitigation” plan announced Friday, Ottawa is expanding the existing work-sharing program to let employers cut hours while keeping workers in their jobs with income support.
This will allow employers to keep workers on their payrolls without having to resort to cutting jobs, MacKinnon said.
He added that the federal government will broaden the program to include workers in for-profit and charitable sectors as well as those working in cyclical or seasonal jobs.
“We are moving ahead with these changes, despite yesterday’s pause, because businesses and workers need assurances right now,” he said, adding that measures will remain in place for as long as needed.
The work-sharing program is funded through the employment insurance benefits that workers and employers pay into.
The program is aimed at avoiding layoffs “when there is a temporary decrease in the normal level of business activity that is beyond the control of the employer,” according to Employment and Social Development Canada.
Under the working-sharing agreement, all employees who participate must agree to cut their normal working hours – a minimum 10 per cent reduction.
Employees must also share the available work equally while their employer recovers.
These agreements can last from six to 26 weeks, and if needed, extend to a total of 38 weeks.
Under the changes announced Friday, MacKinnon said the maximum length of agreements will be increased to 76 weeks.
The work-sharing program was also used to support businesses impacted by the wildfires in Jasper last year as well as the COVID-19 pandemic.
Ottawa also announced a suite of other supports for Canadian businesses and workers.
These include $5 billion in funding over two years for Export Development Canada to help Canadian exporters reach new markets and help companies navigate the economic challenges posed by the U.S. tariffs, according to a news release by the finance department.
Businesses directly impacted by the tariffs will also be able to get “favourably priced loans” to the tune of $500 million through the Business Development Bank of Canada.
In addition, the agriculture and food industry will get $1 billion in new financing through Farm Credit Canada.
“These steps underscore our government’s resolve to ensure that our businesses continue to be resilient,” International Trade Minister Mary Ng said.
She added that the federal government’s top priority is to get the “unjustified tariffs” removed.
© 2025 Global News, a division of Corus Entertainment Inc.
Ad Choices