On Friday this week, Prime Minister Carney unveiled a wide-ranging series of economic policies designed to shore up the Canadian economy in the face of ongoing American tariffs. 

First, the federal government will be pausing its EV mandate for automakers. The targets will not apply for the 2026 model year, and the mandate in its entirety will be reviewed over the next 60 days. 

Second, the Prime Minister announced a new “reskilling package” in order to help workers train for new jobs. This is accompanied by an extension to Employment Insurance by 20 additional weeks for any workers laid off in the near future. 

Third, a strategic response fund. This will be a $5 billion fund which would go towards helping businesses develop their products and find new markets for their products. 

Fourth, reworking the federal government’s “Buy Canadian” policy. Rather than language directing federal departments to make their “best effort” to buy Canadian, federal departments are now obligated to do so.

Fifth, the maximum loan size from the Business Development Bank of Canada is being increased from $2 million to $5 million for small and medium-sized businesses. Large businesses will be able to access the Large Enterprise Tariff Loan Facility, which is a program intended to loan money on a long-term basis to ensure large businesses are able to remain open.