Emergency relief to prevent layoffs and sustain operations
U.S. import tariffs will have varying effects on Canadian employers depending on their U.S. export dependence, financial positions, customer profiles, and more. For those most at risk, a key government objective should be to sustain Canadian operations where possible and mitigate the risk of layoffs caused by workplace closures or production slowdowns.
Export-dependent firms demonstrating financial distress should have access to preferential loan guarantees to maintain operations.
Additionally, the federal government should consider deploying a program similar to the Canada Emergency Wage Subsidy program (CEWS) for eligible firms in trade-dependent sectors and communities to keep Canadians working. This would temporarily subsidize wages and help keep workers on payroll. Revenue generated through retaliatory tariffs could partially fund these and other support measures.
