Canada-US Trade Wars: What does it mean for Canadian Businesses & Government Funding Support?
The trade war between Canada and the United States could raise the profile of some domestic industries, but Canadian retailers say that reality hangs on how long the cross-border tiff continues and if consumer attitudes on made-in-America goods shift. Canada’s dollar-for-dollar retaliatory tariffs targeting $16.6 billion in American imports came into effect July 1st — after the federal government gave the White House a month to rescind its 25 percent tariff on Canadian steel and 10 percent tariff on aluminum imports.
Business Impacts & Government Action:
The Canadian government plans to provide as much as $2 billion in assistance for affected workers, including plans to expand a work-sharing program, increasing funding to the provinces and territories to increase the capacity of the job and training programs available to workers affected and providing liquidity support to affected businesses. Learn about hiring and training grants.
In addition, the Federal Government plans to enhance the Strategic Innovation Fund up to $250 million in new support to help Canadian manufacturers compete and improve the integration of the Canadian supply chain of steel and aluminum. Canada will also invest $50 million over five years to help Canadian companies in export diversification by providing “export readiness” grants.
The Government took similar steps to cushion the impact of a softwood lumber spat (Wingrove & Quinn, 2018). On Friday, steel pipe maker Tenaris SA said it would temporarily lay off 40 workers at its Tenaris Algoma Tubes facility in Sault Ste. Marie, Ontario, which is across the border from the northern Michigan city of the same name. Evidently, Canadian companies will need help in sustaining development and innovation. During these unsteady times, layovers become a huge threat to economic growth. The desire to be a self-sustaining nation has never been higher, and with a shift in consumer demand for Canadian goods, grants and funding are at the peak of importance for your business.
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