Carney Unveils Billions in Aid for Canada’s Tariff-Hit Firms

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Bloomberg) -- Prime Minister Mark Carney rolled out billions of dollars in relief for Canadian businesses and workers battered by tariff wars with the country’s two largest trading partners.

Carney unveiled the aid package on Friday, hours after jobs data revealed that Canada’s unemployment rate jumped to a four-year high. The plan targets companies hit by US and Chinese levies, and its centerpieces are a C$5 billion ($3.6 billion) fund for businesses to adapt and a “Buy Canadian” federal procurement program.

Speaking in front of workers at an aerospace facility in the Toronto area, Carney described Canada as facing a “time of crisis,” during which his overriding priority is to build economic strength. The US is fundamentally reshaping all its trading relationships, he said.

“We’re moving from an age that lasted decades, an age when free trade was a motor of global economic growth to a new age — an age of economic nationalism and mercantilism,” Carney said Friday.

“What’s going on is not a transition, it’s a rupture, and its effect will be profound — workers displaced from their jobs, supply chains that have existed for decades disrupted, companies forced to change where they find their materials and their products.”

US President Donald Trump’s tariffs have badly damaged key Canadian industries such as steel, aluminum, and autos, and forced a contraction in the second quarter. At the same time, Chinese levies on Canadian canola, pork and seafood are squeezing important agricultural sectors.

Carney announced a new C$370-million incentive for producers of biofuels such as canola and pledged to amend clean fuel regulations to support the industry. He also promised to boost Business Development Bank of Canada loans for small and medium-sized businesses and expand a loan facility for tariff-hit large enterprises.

In the auto sector, the government will waive 2026 model year vehicles from Canada’s zero-emission standard and review the overall mandate, confirming a Bloomberg News report.

The relief package also includes a new reskilling program for up to 50,000 workers. Carney said he will make employment insurance more flexible and add extended benefits, and launch a new digital jobs and training platform with private-sector partners.

The country sent 75% of its exports to the US last year. While many Canadian goods can enter the US tariff-free if compliant with the North American free trade deal, Trump’s sectoral levies on metals and autos have curtailed shipments and forced job losses.

Carney recently dropped many retaliatory tariffs on US products in order to revive trade talks, but he kept 25% import taxes on US steel and autos in place — though there is an exemption for car-makers who maintain manufacturing in Canada.

His announcement appears to build on an election promise to create a C$2 billion strategic response fund to support domestic auto manufacturing. He also said Friday that imposing the electric-vehicle mandate for 2026 models would have harmed automakers’ liquidity.

The move was welcomed by Global Automakers of Canada, a trade group representing the Canadian arms of Honda Motor Co., Toyota Motor Corp. and others. Electrification “is the future of our sector, however that transition can only happen as quickly as consumers are willing to move,” President David Adams said in a statement.

Carney’s government has already unveiled some relief measures for the steel industry, including C$70 million for training and income support for as many as 10,000 workers, and C$1 billion for a fund to help firms advance new projects.

Still, for some steel producers, Trump’s 50% tariffs have been an outright disaster. Algoma Steel Group Inc., for example, reported a large second-quarter loss and is applying for federal loans. Its share price has tumbled about 50% this year.

China’s tariffs on Canadian sectors are in response to Canada’s decision to join the US in imposing levies on Chinese electric vehicles, steel and aluminum last year.
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I’m shocked: Banker and Temporary Foreign Worker Prime Minister will fire up the money printer.
 
Upvote 16
So I’m paying for my own bailout? Right on.
 
Yes and No. They will print the money out of thin air. Massively aggravating inflation. You’ll pay for it - whether you like it or not - with your purchases and most importantly - your Savings.
 

Congratulations to anyone who realizes the government can’t be both austere and embark on a massive spending spree — you haven’t yet succumbed to Liberal “doublethink.” What Carney is really saying is that Ottawa plans to focus on different priorities, cutting some areas in order to increase spending in others.
In order to get buy-in from the Canadian public for their fiscally ruinous plan, the Liberals are relying on the Orwellian concept of “doublespeak,” in which the meaning of words are altered to make the truth more palatable.

They’re not engaging in reckless new spending programs after the previous government managed to more than double the national debt in less than a decade, you see — they’re “investing” in Canadians.

To further obscure reality, Carney has promised that the next budget will separate operational spending from capital expenses. This will allow him to balance the operating budget, while still running sky-high deficits on the capital side.

If the government were a business, this might make sense, as short-term capital losses can be expected to turn into long-term gains when those investments start paying off.

But government is not a business. Most of the public infrastructure it “invests” in — from roads to fighter jets — never see any returns. On the contrary, they only add to the government’s long-term maintenance costs.

Some of the new spending measures — such as the massive increase in the military budget intended to meet our NATO commitment of spending two per cent of GDP on defence — is certainly necessary. And there’s no question that Canada is in desperate need of new large-scale infrastructure projects, such as pipelines and ports.


But like his predecessor, Carney has shown a preference for centrally planning the economy rather than unleashing the power and potential of the free market and attracting private investors.

The Carney government’s signature piece of legislation, the Building Canada Act, for example, does not seek to reduce regulation and red tape across the board in order to attract private investment; it only gives the green light to projects that the Liberals deem to be in the “national interest.”

No one should thus be surprised if this government uses the Trans Mountain pipeline — a boondoggle the Trudeau Liberals ended up footing the bill for after scaring off its private owners — as a template for future infrastructure projects.

Carney’s ambitious agenda will be very costly and it cannot be financed by shaving a few points off the operating budgets of some departments, no matter how much the Liberals would like us to believe they’ve seen the light and transformed into the party of “austerity.”
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So that's all this guy knows how to do not fix anything just print more money and give it to people.

UBI is on the way folks.
 
Ultimately a Billion Indians will save us all
 
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"We’re moving from an age that lasted decades, an age when free trade was a motor of global economic growth to a new age — an age of economic nationalism and mercantilism,” Carney said Friday.
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Whatever you do, don't look up Canada's GDP growth since 2015 when PM Blackface took office....
 
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