Canada Unveils Sweeping Plan to Shield and Transform Strategic Industries
New measures target skills, financing, procurement, liquidity and trade diversification amid U.S. tariff shock
TORONTO — Prime Minister Mark Carney announced a broad industrial package Friday aimed at helping workers and firms weather U.S. tariff disruptions and reposition Canada’s economy for resilience and growth. The plan combines new skills programs, a $5-billion Strategic Response Fund, a federal Buy Canadian Policy, liquidity supports, agriculture and biofuels measures, and expanded regional assistance for small and mid-sized businesses.
Carney framed the approach as a pivot from reliance on a single trading partner to a more diverse, domestically anchored economy:
“We cannot control what other nations do. We can control what we give ourselves — what we build for ourselves… we are ensuring that our workers and businesses will prosper by building Canada’s strength at home.”
Why now
Ottawa says rapidly changing U.S. trade policies are displacing workers, disrupting supply chains, and cooling investment. The response aligns with the government’s wider agenda: fast-tracking nation-building infrastructure via the new Major Projects Office, rolling out a Defence Industrial Strategy, launching a Trade Diversification Strategy, and standing up Build Canada Homes to accelerate housing construction.
What Ottawa is announcing
1) Workforce measures: skills, EI flexibility, and sector partnerships
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Reskilling package for up to 50,000 workers via an additional $450M over three years through Labour Market Development Agreements.
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Modernized Job Bank & national training platform ($50M over five years) with AI-assisted job matching, course discovery, and upcoming upgrades (skills-gap feedback, local referrals, salary transparency, AI-use disclosure on postings, employer “Worker Dashboard”).
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Workforce Alliances and a $50M Workforce Innovation Fund (within a $382M/5-year envelope) to align training with urgent needs in sectors under pressure (e.g., auto parts, steel, aluminum) and growth areas (energy, critical minerals, advanced manufacturing).
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Extra 20 weeks of EI (to a max of 65) for long-tenured workers (claims retroactive to June 15, 2025; starts Oct. 12, 2025; $1.6B over five years).
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EI measures extended to April 11, 2026: severance no longer offsets benefits ($424M/2 years); one-week waiting period waived ($418M/2 years).
2) $5B Strategic Response Fund (SRF)
Targeted to highly trade-exposed firms facing revenue/job losses, backing large-scale pivots (retooling, FEED/pre-FEED, new products/markets). Prioritizes projects with provincial/territorial co-funding and those maintaining critical industrial and skills capacity.
Note: SRF replaces the Strategic Innovation Fund for the current challenge, while continuing to support innovation projects; existing/prospective SIF projects are not cancelled.
3) Buy Canadian Policy (phased in)
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Prioritize Canadian suppliers across federal procurement (initial focus: steel and softwood lumber; policy live by November 2025 and expandable).
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Local-content rules and purchases from trusted partners only when Canadian supply is truly unavailable; full implementation of Reciprocal Procurement by spring 2026.
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Extend “Buy Canada” requirements to infrastructure spending, grants, contributions, loans, and Crown corporations, broadening reach to ~$70B in additional funding streams.
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SME Procurement Program to simplify access and cut red tape.
4) Liquidity relief and auto sector flexibilities
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BDC maximum loan size for SMEs lifted to $5M.
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Large Enterprise Tariff Loan Facility: lower rates, longer maturities.
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Auto sector relief: 2026 EV Availability Standard target removed; 60-day regulatory review launched to reduce costs and consider further flexibilities (including post-2030 trajectory), while still pursuing long-term ZEV goals.
5) Agriculture & biofuels support (with focus on canola)
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Biofuels Production Incentive: >$370M over two years (2026–2027) for Canadian biodiesel/renewable diesel producers (up to 300M litres per facility), plus targeted Clean Fuel Regulations amendments to stabilize the low-carbon fuels sector.
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Advance Payments Program (APP): interest-free portion for canola advances doubled to $500,000 for the remainder of 2025 and for 2026.
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AgriMarketing Program: +$75M over five years (from 2026–27) to diversify into Africa, the Middle East, and the Indo-Pacific, supporting sectors hit by barriers (including canola).
6) Regional Tariff Response Initiative — expanded
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Grows from $450M to $1B over three years, with non-repayable contributions up to $1M for SMEs across affected sectors, and eligibility for not-for-profits aiding diversification. Projects over $20M may seek SRF support.
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Examples prioritized: digitization/productivity upgrades (e.g., aluminum fabrication), canola processors expanding sales in new markets, advisory services for SME diversification.
How it fits together
The package seeks to bridge immediate shocks (tariffs, financing strain) while rewiring long-term competitiveness through domestic demand, procurement anchors, and diversified markets. Ottawa says the mix of skills + capital + demand signals (procurement) + regulatory streamlining is intended to restore certainty and catalyze private investment.
What’s next
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First nation-building projects under the Major Projects Office to be named in the coming weeks.
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Forthcoming launches: Defence Industrial Strategy, Trade Diversification Strategy, and Build Canada Homes to accelerate construction over the next decade.
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Details on biofuels program design and Clean Fuel Regulations amendments to follow from Natural Resources Canada.
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EV Availability Standard review concludes after 60 days with potential additional flexibilities.
Context & government stance
Officials argue that, with private investment chilled by uncertainty, the “most comprehensive suite of trade-resilience measures in Canadian history” is warranted to defend jobs, maintain industrial capacity, and ensure Canada can “build at home” while diversifying abroad.
For background on related initiatives, see GTA Today’s coverage of the Major Projects Office and recent tariff and skills measures.
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