Canada unveils suite of business relief measures amid U.S. trade war

What is the Trade Impact Program?

The federal government announced a $6-billion aid program to support Canadian businesses through the trade war with the U.S.

The “Trade Impact Program” includes:

• $5 billion in funding over two years for Export Development Canada to help Canadian exporters reach new markets and navigate the economic challenges posed by the U.S. tariffs.
• Employers directly impacted by the trade war be able to get “favourably priced loans” to the tune of $500 million through the Business Development Bank of Canada.
• The agriculture and food industry will get $1 billion in new financing through Farm Credit Canada.

“We are moving ahead with these changes, despite yesterday’s pause, because businesses and workers need assurances right now,” Labour Minister Steve MacKinnon said during a press conference on March 7.

SEE ALSO
• What is Ontario doing to support businesses during the U.S. trade war?
• CFIB: 62% of small businesses ‘taking a hit’ from U.S. tariffs in March
• 40% of Canadians fear layoffs amid U.S. trade war, March poll finds
• Tariffs in Canada: News, Layoffs, and Employee Rights

Ottawa announces new temporary EI measures

The federal government is also implementing new temporary Employment Insurance (EI) measures to support Canadian workers whose jobs are impacted by the current economic uncertainty caused by the U.S. trade action.

Ottawa’s pilot program will include:

• Allowing claimants to receive EI benefits sooner by “suspending the rules around treatment of severance, vacation, and other monies upon separation” for six months. Ultimately, this means Canadians will be able to get severance and EI for the same period for time.
• Waiving the waiting period so that workers are able to receive EI benefits for the first week of unemployment. All claimant types (regular, special, fishing) are eligible for this measure, which will be in effect for six months.
• Artificially boosting regional unemployment rates by one percentage point. This three-month measure will reduce the hours required to qualify for regular benefits to no higher than 630 hours and increase the weeks of entitlement by up to four additional weeks.

The federal government is also temporarily expanding its EI Work-Sharing Program to let employers cut hours while keeping staff in their jobs with income support.

Agreements under the federal government’s work-sharing program can last from six to 26 weeks. If needed, they can extend to a total of 38 weeks.

However, MacKinnon claimed that the maximum length of these agreements is being increased temporarily to 76 weeks.

ADDITIONAL RESOURCES
• Employment Insurance in Ontario: What employees need to know
• Everything you need to know about Employment Insurance in Alberta
• Employment Insurance in B.C.: Employee guide

Canadians concerned about widespread layoffs

Economic disruptions caused by tariffs often lead to layoffs — Trump’s sweeping duties on Canadian goods are no exception.

Why Samfiru Tumarkin LLP?

At Samfiru Tumarkin LLP, we’ve helped over 50,000 clients secure fair severance packages — recovering millions of dollars for non-unionized employees across Canada.

With extensive experience representing workers in roles at small businesses and large organizations across various industries, our team provides the expertise you need to navigate your termination effectively.

SEE ALSO
• Should I negotiate my own severance package in Ontario?
• What Albertans need to know about negotiating severance
• Negotiating severance in B.C.: What employees need to know

WATCH: Employment lawyer Lior Samfiru explains the difference a legal professional can make in certain situations on an episode of the Employment Law Show.

We specialize in assisting non-unionized employees in Ontario, Alberta, and British Columbia — ensuring rights are fully protected.

In addition to employment law, our firm handles disability claims and personal injury cases.

Call 1-855-821-5900 today or request a consultation online.

Disclaimer: The materials provided in this article are for general informational purposes only and DO NOT constitute legal advice. For advice specific to your situation, please consult a legal representative at Samfiru Tumarkin LLP.