The following update has been reproduced from an email distributed by Tracy Folkes Hanson, CAE, President & CEO of the Canadian Society of Association Executives (CSAE).
Yesterday was another big news day, so we wanted to provide you with an update. The government announced the Canada Strong Response Plan to support Canadian workers and businesses affected by U.S. tariffs. This plan includes targeted counter-measures and a $7.5B worker support package.
In this announcement, the Minister of Finance also highlighted the government's intention to match the U.S. tariffs dollar for dollar, effective September 8th. This includes up to 15%, 25%, or 50% of counter-tariffs on $27.6B in U.S. imports on similar Canadian products to match U.S. measures. They also indicated a strategic approach to place political pressure on certain U.S. states and their exports.
The government indicated three guiding factors to their approach: rapidity, simplicity, and agility. With this, they want to ensure that Canadians and Canadian businesses can access the measures listed below quickly and efficiently.
Business and Industry Supports
- Regional Tariff Response Initiative
- Through their regional development agencies (RDAs), small businesses with $1M in annual revenue will have access to $3M in non-repayable loans, and access to a $2M interest-free loan.
- Business Development Bank of Canada (BDC)
- Through the BDC small businesses will have access to between $250k - $500M in supports through interest-free loans, of which are non-repayable for the next 36 months.
- Canada Strong Diversification Fund
- Larger businesses will have access to a new stream of the Strategic Response Fund, into which the government has announced they will be putting $2B in funding to support tariff-impacted companies with shovel-ready projects.
- Large Enterprise Tariff Loan (LETL) facility
- The government announced new flexibilities to the $10B LETL facility to provide flexible liquidity to bridge large employers through this period, including increasing supports from 24 to 36 months, and increasing the maximum loan term from 10 to 15 years.
Worker and Workforce Support
The government announced an additional $3.5B over 4 years to be dedicated towards workforce support.
- Employment Insurance
- The government will be extending 3 temporary Employment Insurance measures for up to another year.
- The one week waiting period for EI benefits to kick in will continue to be waived to allow Canadians to access the benefit when they need it.
- Workers will be able to access EI benefits immediately, before having to exhaust their vacation or severance pay.
- The government announced an additional 20 weeks of EI access for long-tenured workers.
- The government announced its intention to amend the reasons for separation rule, ending penalization for those who have chosen to recently change jobs, allowing those who have lost a new job prospect to access EI.
- Workforce Training and Retention Programs
- The government announced enhancements to existing worker training and retention programs, to allow employers to keep workers even in reduced operations:
- Employers can reduce work hours to as little as two days per week, while workers can receive regular EI benefits for days not worked.
- If an employer arranges training for their employees in their off days, income replacement through EI will be 70% of total earnings, as opposed to 55%.
- This program will include a new $1000 training bonus per employee for employers, delivered through regional development agencies
There's a lot here, and a lot still to work through as businesses and associations figure out what these measures mean in practice. That's exactly what we'll be digging into at Tariff Talks this Thursday, August 27 at 12:00 PM, with First Lake Solutions. Bring your questions, whether they're about the announcement, the broader trade situation, or what it means for your sector. Open to everyone in our community, members and non-members alike.
Register for Tariff Talks - Trade War Responses
As the national voice for Canada's association sector, CSAE is tracking these developments closely because so many of our members, and the industries and professions they represent, are directly affected by what happens next. We'll continue to provide you with updates to keep you informed.