Canada Is Spending Billions to Help Its Workers Survive Our Tariffs
On Tuesday, Canadian officials announced funding to back businesses, workers, and industries, as they implement dollar-for-dollar counter-tariffs on the US in response to the Trump administration’s newly imposed 50 percent tariffs on roughly $20 billion worth of Canadian imports. Senior members of Canada’s government announced a support package worth $7.5 billion Canadian dollars, or about […]
Canada has allocated a massive $7.5 billion Canadian dollars ($5.4 billion US) support package to assist businesses, workers, and industries in coping with the dollar-for-dollar counter-tariffs imposed on them by the United States in response to the Trump administration's 50 percent tariffs on roughly $20 billion worth of Canadian imports.
The package includes $3 million in non-repayable loans for every small business and $2 million in interest-free loans for businesses indirectly affected by the tariffs. Small and medium-sized businesses facing direct impacts can apply for an additional $5 million through Canada’s business development bank, while $2 billion is set aside for medium-sized and large firms, with over half a billion dollars earmarked for retraining workers in industries affected by the tariffs.
Moreover, the Canadian government has extended the temporary employment insurance benefits it already provided in response to the trade war with the US last year for an additional year. These measures come after US-Canada trade negotiations fell apart due to Canada's proposal to lower tariffs on automobiles, which exceeded the Trump administration's acceptable limits.
American companies reportedly lobbied the Department of Commerce and other White House officials to maintain their protective measures. The initiative, while primarily aimed at supporting businesses, represents a significant step far greater than any taken by the Trump administration, which largely ignored the potential harm to American workers and consumers.
The Center for American Progress data shows that in the 10 months following the "Liberation Day" tariffs introduced by the Trump administration in April, the US lost 89,000 manufacturing jobs and 124,000 transportation and warehousing jobs. The tariffs have severely impacted blue-collar industries across nearly every state, despite delivering few tangible results in enhancing US manufacturing or reducing the trade deficit.
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