>The federal government is planning a multibillion-dollar, pandemic-style bailout for workers and businesses if U.S. President Donald Trump follows through on his threat to impose 25-per-cent tariffs on Canadian goods as early as Feb. 1, two sources say.
>The sources said some of the measures, such as waiving the one-week waiting period for employment insurance benefits, do not require parliamentary approval. But the bulk of potential spending on new programs to help laid-off workers and businesses affected by tariffs will require legislative approval, which could not take place until Parliament resumes sitting on March 24.
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>The government expects U.S. tariffs could lead to mass layoffs and drive up the cost of goods for consumers. Canadian companies will likely respond not only by cutting jobs but by curtailing production. Businesses would lose money and some would have to close. The sources said the emergency measures would help Canadians pay for rent and groceries and allow businesses to pay bills and meet payroll.
>Ontario Premier Doug Ford, who is expected to call an election this week, has said he believes tens of billions of dollars in pandemic-style spending will be needed to keep the economy afloat in the event of U.S. tariffs. He has also said the tariffs could cost Ontario 500,000 jobs.
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>One of the sources said the federal cabinet is of the opinion that billions of dollars of aid do not need to flow immediately even if Mr. Trump hits Canada with punishing tariffs on Feb. 1. They note a Jan. 20 executive order from Mr. Trump suggests a different timeline. The âAmerica First Trade Policyâ order directs federal officials including the Secretary of Commerce by April 1 to investigate the United Statesâ trade deficits with major trading partners and also assess âunlawful migration and fentanyl flowsâ from Canada, Mexico and China into the United States âand recommend appropriate trade and national security measures to resolve that emergency.â
Just getting in here before the government claims the Opposition is holding the Canadian economy hostage by threatening to vote down its throne speech.Â
E_Cayce on
That’s exactly what Trump did with the USDA farmer bailout in 2018-2020 after the retaliatory tariffs from Mexico and China. Direct farm aid climbed from $11.5 billion in 2017 to more than $32 billion in 2020.
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Archived version: https://archive.fo/2025.01.28-101246/https://www.theglobeandmail.com/politics/article-trump-tariffs-canada-planning-massive-relief-workers-businesses/.
Summary:
>The federal government is planning a multibillion-dollar, pandemic-style bailout for workers and businesses if U.S. President Donald Trump follows through on his threat to impose 25-per-cent tariffs on Canadian goods as early as Feb. 1, two sources say.
>The sources said some of the measures, such as waiving the one-week waiting period for employment insurance benefits, do not require parliamentary approval. But the bulk of potential spending on new programs to help laid-off workers and businesses affected by tariffs will require legislative approval, which could not take place until Parliament resumes sitting on March 24.
>[âŠ]
>The government expects U.S. tariffs could lead to mass layoffs and drive up the cost of goods for consumers. Canadian companies will likely respond not only by cutting jobs but by curtailing production. Businesses would lose money and some would have to close. The sources said the emergency measures would help Canadians pay for rent and groceries and allow businesses to pay bills and meet payroll.
>Ontario Premier Doug Ford, who is expected to call an election this week, has said he believes tens of billions of dollars in pandemic-style spending will be needed to keep the economy afloat in the event of U.S. tariffs. He has also said the tariffs could cost Ontario 500,000 jobs.
>[âŠ]
>One of the sources said the federal cabinet is of the opinion that billions of dollars of aid do not need to flow immediately even if Mr. Trump hits Canada with punishing tariffs on Feb. 1. They note a Jan. 20 executive order from Mr. Trump suggests a different timeline. The âAmerica First Trade Policyâ order directs federal officials including the Secretary of Commerce by April 1 to investigate the United Statesâ trade deficits with major trading partners and also assess âunlawful migration and fentanyl flowsâ from Canada, Mexico and China into the United States âand recommend appropriate trade and national security measures to resolve that emergency.â
>The source said the aid package could be ready to roll out once Parliament resumes. But it would require co-operation from the opposition parties in that they would have to delay their declared intention of bringing down the minority Liberal government until the relief legislation is adopted. The Conservatives, Bloc Québécois and NDP have all said they would defeat the Liberal government at the first opportunity.
>No discussions have taken place with the opposition parties at this point, the source said.
Further reading:
https://nationalnewswatch.com/2025/01/28/trumps-tariff-threat-worked-on-colombia-but-his-plans-for-canada-and-mexico-carry-higher-stakes
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> The source said the aid package could be ready to roll out once Parliament resumes. But it would require co-operation from the opposition parties in that they would have to delay their declared intention of bringing down the minority Liberal government until the relief legislation is adopted. The Conservatives, Bloc Québécois and NDP have all said they would defeat the Liberal government at the first opportunity.
Just getting in here before the government claims the Opposition is holding the Canadian economy hostage by threatening to vote down its throne speech.Â
That’s exactly what Trump did with the USDA farmer bailout in 2018-2020 after the retaliatory tariffs from Mexico and China. Direct farm aid climbed from $11.5 billion in 2017 to more than $32 billion in 2020.