The Government of Canada has announced a comprehensive package of funding and workforce measures to support Canadian businesses and workers impacted by U.S. tariffs. These initiatives are designed to defend jobs, strengthen Canada’s industrial capacity, and ensure businesses are prepared to grow in a shifting global trade environment.
Canadian workers have felt the impact of U.S. tariffs most acutely. To build a strong, confident workforce, the government is investing in training, job tools, and employment supports.
Reskilling Package: An additional $450 million over three years will flow through Labour Market Development Agreements (LMDAs) with provinces and territories to retrain and upskill up to 50,000 workers. These supports will include skills training, wage subsidies, and career counselling. The focus will extend to long-tenured and mid-career workers affected by U.S. tariffs and global market shifts, as well as underrepresented groups, including women, Indigenous Peoples, and persons with disabilities.
Digital Job Tools: $50 million over five years will modernize the Job Bank, integrating artificial intelligence and launching a national online training platform. This will help adults find training courses by skill, location, and format, in partnership with organizations such as Indeed, Jobillico, Career Beacon, Zip Recruiter, eCampus Ontario, and the Skills Council of Canada.
Additional Features (by November 2025): The Job Bank will roll out enhanced tools, including customized referrals to local support organizations, a feedback mechanism to identify skill gaps within 30 days of a job application, salary information on all postings, disclosure if AI is used in hiring, and a Worker Dashboard to connect job seekers with employers at the local level.
Workforce Alliances: $382 million over five years will establish three to five Workforce Alliances, bringing together employers, unions, and industry groups to address urgent labour market challenges in sectors under pressure, such as auto parts, steel, and aluminum, and sectors with growth potential, including energy, critical minerals, and advanced manufacturing.
Workforce Innovation Fund: A new, flexible $50 million fund will support projects tailored to regional labour markets, helping businesses recruit and retain the workers they need, including in rural and remote areas.
Enhanced Employment Insurance (EI): Beginning October 12, 2025 (retroactive to June 15, 2025), long-tenured workers will receive 20 extra weeks of EI income support, up to a maximum of 65 weeks. This $1.6 billion investment over five years is expected to support approximately 190,000 workers. Temporary EI measures will also be extended to April 11, 2026, including suspending separation payment rules ($424M over two years) and waiving the one-week waiting period ($418M over two years).
A new Strategic Response Fund (SRF) is being launched with $5 billion in investment to help highly trade-exposed companies adapt, retool, and grow in the face of tariff pressures.
The fund will prioritize projects in sectors or companies facing revenue loss, reduced profitability, and job cuts. Eligible projects include front-end development costs, capital investments, retooling initiatives, and activities that help diversify markets. Provincial and territorial co-funding will be encouraged, and flexibility will be provided for pre-development and engineering studies.
The SRF replaces the Strategic Innovation Fund but will continue to support innovation projects under its broader mandate. It will also work closely with Workforce Alliances to ensure businesses can access both capital and skilled labour.
Originally launched in March 2025, the Regional Tariff Response Initiative (RTRI) is being expanded from $450 million to $1 billion over three years.
The RTRI will provide non-repayable contributions of up to $1 million to SMEs directly or indirectly impacted by tariffs, as well as not-for-profit organizations supporting businesses with trade disruptions. Projects seeking more than $20 million may be directed to the Strategic Response Fund.
Examples of eligible projects include:
Aluminum processors adopting new technologies to digitize processes.
Canola processors impacted by foreign tariffs hiring sales staff and expanding into new markets.
Not-for-profit organizations providing advisory services to SMEs on trade diversification.
The RTRI will be delivered through Regional Development Agencies and coordinated with Workforce Alliances.
The government is introducing a Buy Canadian Policy to ensure federal procurement and funding streams prioritize Canadian suppliers.
Key elements include:
By November 2025, Canadian suppliers will be prioritized in federal spending, beginning with materials such as steel and softwood lumber.
Local content requirements will apply when Canadian suppliers are not available, ensuring domestic benefits remain even in international procurements.
Reciprocal procurement rules will be implemented to ensure fairness with trading partners.
Buy Canadian requirements will be extended across grants, contributions, loans, and Crown corporations, encompassing an additional $70 billion in spending.
A Small and Medium Business Procurement Program will help SMEs access opportunities more easily.
To help businesses manage short-term challenges:
The Business Development Bank of Canada (BDC) will increase its maximum loan size from $2 million to $5 million.
The Large Enterprise Tariff Loan Facility will provide lower interest rates and longer maturities.
For the automotive sector, the government will remove the 2026 target under the Electric Vehicle Availability Standard (EVAS) and begin a 60-day regulatory review. This review will ensure targets remain effective without placing undue burden on automakers while supporting the transition to zero-emission vehicles.
The government is committing significant resources to stabilize Canada’s agricultural and biofuel sectors, which have been particularly affected by U.S. policy shifts.
Biofuels Incentive: Over $370 million will be invested over two years to provide a per-litre incentive for renewable diesel and biodiesel producers, available from January 2026 to December 2027, up to 300 million litres per facility.
Advance Payments Program (APP): The interest-free portion of APP loans for canola producers will double to $500,000 for the remainder of 2025 and all of 2026, providing greater flexibility and financial stability.
AgriMarketing Program: An additional $75 million will be invested over five years starting in 2026–27 to expand Canadian agri-food promotion into new high-growth international markets, such as Africa, the Middle East, and the Indo-Pacific.
Application intake details for these measures have not yet been released. However, programs will be highly competitive, and businesses impacted by tariffs should begin preparing now to align projects with program priorities.
Source: Prime Minister of Canada – News Release
The new suite of tariff relief and workforce programs represents a significant opportunity for Canadian businesses — but application windows will be highly competitive, and the criteria complex. That’s where GrantMatch comes in.
Our team of funding experts specializes in navigating government programs, from workforce development and innovation to regional and sector-specific supports. We can help your organization:
Assess Eligibility: Determine which measures, from the Strategic Response Fund to the Regional Tariff Response Initiative, best fit your business.
Align Projects with Priorities: Ensure your initiatives are positioned to meet program requirements and maximize funding potential.
Prepare and Submit Strong Applications: Leverage our proven track record in securing funding for Canadian businesses across manufacturing, agriculture, energy, and more.
Stay Ahead of Deadlines: Monitor intake announcements and keep your business ready to act quickly.
With billions of dollars now available to support Canadian firms impacted by tariffs, the time to prepare is now.