In response to the ongoing auto tariff situation the federal government has announced a series of supportive measures aimed at protecting workers and helping businesses adapt.
The announcement, made by Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism) at Unifor Local 444 in Windsor, Ontario, comes at a pivotal moment for auto workers, parts suppliers, automakers, and dealers. It aims to keep paycheques flowing, help firms manage cash flow, and make the necessary investments to stay competitive through the trade disruptions.
“When tariffs hit, families feel it at the kitchen table and workers feel it on the shop floor,” said Valdez in a statement. “Our government’s new measures will secure jobs, protect incomes, and expand training so workers can build stronger careers.”
What’s on the Table
Specifically for auto industry businesses, the federal government said it is investing $5 billion through the Strategic Response Fund. This is to help firms in sectors impacted by tariffs adapt to the economic situation, diversify their capabilities, and secure new markets for long-term growth.
There is also a Regional Tariff Response Initiative, in which the government is expanding support to small and medium-sized enterprises (SME) — including auto parts suppliers. The government will increase total available funding from $450 million to $1 billion over three years through the initiative, with flexible terms. This in turn expands non-repayable contributions to eligible businesses impacted by tariffs across the sectors that have been affected.
Furthermore, the government is increasing the maximum loan size available to SMEs through the Business Development Bank of Canada. It will boost the loan size from $2 million to $5 million — and offer more flexible financing to larger firms through the Large Enterprise Tariff Loan Facility.
