Ottawa commits over CA$6 billion to fight impact of US tariffs
OTTAWA—Canada on Friday unveiled billions of dollars in aid and other forms of support to businesses and people expected to be directly affected by US tariffs.
These relief measures involve over CA$6.5 billion (US$4.52 billion) of financial aid to help companies tap new international markets, absorb the impact of losses, access easy loans and prevent layoffs, a team of ministers said.
Canada relies on the United States for 75 percent of its exports and a third of all imports. Its reliance on trade for economic growth leaves the country vulnerable in case of a protracted trade war.
US President Donald Trump’s administration imposed 25 percent tariffs on most imports from Canada and Mexico earlier this week, before announcing a suspension of the charges until April 2 on goods covered by the US-Mexico-Canada Agreement on trade.
“We are moving ahead with these changes despite yesterday’s pause because businesses and workers need assurances right now,” Labour Minister Steven MacKinnon said at a news conference on Friday.
“We may not know what our American neighbors will do, nor what new tale they will tell, but we are united.”
For two years
Exporters hurt by tariffs can access funding from a pool of C$5 billion this year and next to help them diversify to new global markets and absorb losses from non-payment, currency fluctuations, hits to cash flows, as well as overcome barriers to expansion, the government said in a statement.
Another CA$1 billion is being offered to reduce financial barriers for the Canadian agriculture and food industry, it said, adding that CA$500 million has been set aside for low-interest loans.
Exports to the US account for roughly 18 percent of Canada’s GDP and more than 2.4 million jobs in Canada are dependent on business with the U.S. While just one percent of US GDP is reliant on exports to the north, the US is particularly dependent on Canadian oil.
Trade Minister Mary Ng said the ministry was making efforts to diversify Canada’s export market and by the end of this year, Canada would surpass its previous goal to diversify its non-US exports by 50 percent. It is also talking to other countries to get access to their markets, she said.
