Here’s What Federal and Provincial Governments Have Proposed for Aid in Response to US Tariffs

Ontario Premier Doug Ford (L), and Intergovernmental Affairs Minister Dominic Leblanc look on as Prime Minister Justin Trudeau speaks at a press conference concluding a first ministers meeting, in Ottawa, on Jan. 15, 2025. The Canadian Press/Sean Kilpatrick

The decision by U.S. President Donald Trump to levy tariffs on Canadian imports has spurred Prime Minister Justin Trudeau and several premiers to implement measures intended to support Canadian companies and their employees.

Trump imposed 25 percent tariffs on most Canadian products and 10 percent on energy imports on March 4, but instituted a one-month pause on auto tariffs. Canada responded with retaliatory tariffs on $30 billion worth of American goods, and said it would add an additional $125 billion in tariffs in three weeks’ time if U.S. tariffs are still in place.

Ottawa and the provinces have also spoken out about how they will help both industry and the workforce to navigate the impact of the trade war.

Here’s a look at the measures being promised.

Federal

Ottawa pledged in January to redirect revenues obtained from counter-tariffs on the United States toward aiding businesses and workers impacted by American tariffs on Canadian goods.

Now that the tariffs have officially taken effect, Prime Minister Justin Trudeau says the government will use “every tool at our disposal so Canadian workers and businesses can weather this storm.”

The government is currently looking at the expansion of employment insurance (EI) benefits and providing direct supports to businesses impacted by tariffs, Trudeau said during a March 4 press conference.

Trudeau said the primary goal is to find solutions so tariffs can be removed on both sides of the border “to prevent these difficult times from lasting any longer than absolutely necessary.”

Ontario

Premier Doug Ford has pledged $40 billion to assist industries and workers in addressing the effects of U.S. tariffs on their enterprises and employment.

A big part of that will be the $5 billion Protect Ontario Account which Ford’s Progressive Conservative  party described in its recent election platform as a way to assist “large-scale industrial job creators” in addressing operational and supply chain difficulties, as well as in restructuring and retooling to attract new customers and maintain employment for workers.

The province will also earmark up to $40 million for the Trade-Impacted Communities Program to support municipalities and communities experiencing economic challenges due to U.S. tariffs, according to its Protect Ontario plan.

The premier has also pledged tax relief for businesses owners. Ontario will grant $10 billion in “immediate financial assistance” to Ontario job creators by implementing a six-month deferral of provincial business taxes, the province said. It is also allocating up to $3 billion in tax and payroll premium relief for employers and small businesses.

How the remainder of the $40 billion will be spent is not yet clear, but Ford said at a Feb. 24 press conference that the province may offer loans. He has also pledged to create new jobs through construction and infrastructure projects as Ontario looks to build new roads and houses.

Quebec

Quebec will allocate up to $50 million in liquidity loans to support local businesses vulnerable to U.S. tariffs, aiming to enable these companies to reduce their dependence on trade with the United States.

Premier François Legault announced the measure March 4, saying company loans will be handed out over the next 12 months as part of the “Frontière” (Border) program. The loans will be available for a maximum term of seven years, accompanied by a two-year deferral during which companies will not be required to make any payments.

The premier has also encouraged businesses interested in expansion to apply for funding with Investissement Québec, the province’s investment organization.

Quebec is planning infrastructure projects and is collaborating with Hydro Quebec to create more jobs, Legault said.

British Columbia

The B.C. government plans to offer support to anyone who is laid off due to the tariffs and will help companies find new markets for their exports, Premier David Eby said in a March 4 speech.

Eby said the province would ensure federal aid flows to the people who need it most in B.C. and will “fill in the blanks wherever there is an area that isn’t being addressed by Ottawa.”

The government said one of its main focuses will be to grow the economy by accelerating major projects to create jobs and “wealth across the province.”

The government, in its throne speech last month, said it plans to implement a Buy B.C. program to stimulate the provincial economy while fast-tracking private-sector resource projects and building on the province’s strengths in technology, life sciences, and film.

Alberta

Premier Danielle Smith said during a March 5 press conference that she will continue to push for the elimination of provincial trade barriers and a country-wide commitment to the construction of pipelines, LNG facilities, and mines.

She has also vowed her province will mandate that all needed goods and services “be purchased from Alberta companies, from Canadian companies, and from countries with which Canada has a free trade agreement that is being honoured.”

Saskatchewan

Premier Scott Moe has yet to announce what moves his government will take to respond to the tariffs.

Moe said his cabinet was meeting today to consider its options but no announcement had been made by publication.

“Our government is carefully considering Saskatchewan’s response,” Moe said in a March 4 social media post.

“As we have always done, our government will continue working to expand trade to other countries and expand trade within Canada by reducing interprovincial barriers and promoting the construction of necessary infrastructure like pipelines.”

Manitoba

Premier Wab Kinew announced on March 4 his government would launch tax deferrals for businesses affected by U.S. tariffs. The measure enables the delay of the province’s health and post-secondary levy, along with the retail sales tax.

Kinew said the deferral will remain in place for three months before being reassessed.

Nova Scotia

The province added a contingency fund to its 2025-2026 budget that can be used as needed to mitigate the impact for those most impacted by tariffs, Premier Tim Houston has said.

“It is too early to determine exactly what specific funding is necessary, but we will communicate to Nova Scotians as we better understand the economic impacts and the federal government’s plans to support Nova Scotians,” Houston said in a March 4 statement. “We will also take any step we can to support Nova Scotians through this incredibly difficult time.”

New Brunswick

Premier Susan Holt has announced a support package that will offer relief to companies and individuals hit hardest by the tariffs.

As part of that package, New Brunswick is earmarking $40 million for a “competitiveness and growth” program to help the province’s large export-intensive companies find markets outside of the United States, according to a March 4 press release from the premier. The province will also offer $5 million “working capital loans” to help companies maintain operations.

A contingency fund will also be established by the Regional Development Corporation to assist communities affected by tariffs, while a “flexible labor market support program” will offer services and aid to individuals whose employment has been impacted by these tariffs, the province said.

Newfoundland and Labrador

Premier Andrew Furey has yet to announce any funding or support measures for businesses and workers but said the province would continue to collaborate with industry, community, and labour organizations to deal with the impact of tariffs.

The province will also “identify new export markets for Newfoundland and Labrador products with a series of market development and expansion initiatives … to grow our trading opportunities,” Furey said in a March 4 statement.

Furey announced his resignation as premier on Feb. 25. He will officially step down once the Liberal Party selects his successor.

Prince Edward Island

The province will introduce a range of new and enhanced initiatives aimed at supporting local businesses during the initial phases of the trade dispute, Premier Rob Lantz said in a March 4 statement.

These actions include providing non-repayable assistance to companies affected by the tariffs, covering up to 60 percent of eligible costs to a maximum of $32,000 and putting a tariff working capital program in place. It will offer loans of up to six years to help businesses sustain operations, protect jobs, and explore alternative supply chains, the province said.

Businesses approved for a loan will only be required to pay interest for the first year.

The province is also doubling the number of provincial trade missions it conducts and will provide support to export companies wishing to participate in these missions.