On March 7, 2025, the Canadian federal Ministers of Labour, Trade, Small Business, and Agriculture held a joint press conference detailing government measures to support Canadian taxpayers and businesses in response to anticipated economic disruptions caused by tariffs and trade actions imposed by the United States government.
Ministers Steve MacKinnon (Labour), Mary Ng (International Trade), Rechie Valdez (Small Business), and Lawrence MacAulay (Agriculture) outlined these measures, which take effect immediately, to provide assistance through their respective ministries.
Support programs for Canadian employees and employers
The Work-Sharing Program, administered through Canadian Employment Insurance, allows employers to retain employees by reducing working hours instead of implementing layoffs during slower periods. Work-sharing benefits help top up wages to compensate for reduced hours.
As of March 7, 2025, the federal government has implemented enhancements to the program, including:
- Expanding eligibility to non-profit organizations and registered charities.
- Allowing employees in cyclical and/or seasonal employment to participate in the program.
- Extending the maximum eligibility period from 38 weeks to 76 weeks.
Additionally, the Business Development Bank of Canada (BDC) will administer $500 million in below-market, favourably priced loans to support businesses directly impacted by U.S. trade actions. The BDC will offer working capital loans ranging from $100,000 to $2 million to commercially viable businesses for up to six years. These loans will feature favourable repayment terms, including the option to defer principal payments for up to 12 months. The interest rate will be BDC’s base rate minus 2%.
Support programs for exporters
Effective immediately, Export Development Canada (EDC) has launched the Trade Impact Program, allocating $5 billion over two years to assist Canadian businesses that export and sell goods globally. The program aims to help businesses expand into new markets and navigate economic uncertainties. Key measures include:
- Working capital support to mitigate financial risks caused by reduced sales to the U.S.
- Credit insurance to protect businesses against non-payment and bad debts.
- Foreign exchange security guarantees to minimize currency risk.
- Loans and financing solutions to support business expansion, acquisitions, and diversification into non-U.S. markets.
Support for farmers and the agricultural sector
Farm Credit Canada (FCC) will administer the Trade Disruption Customer Support Program, providing $1 billion in funding to assist Canadian farmers and the agricultural industry. Key relief measures include:
- Access to lines of credit up to $500,000.
- Availability of new term loans.
- Principal payment deferrals of up to 12 months for existing loan facilities to ease working capital constraints.
Additionally, the Advance Payments Program, administered under Agriculture and Agri-Food Canada, offers farmers low-cost cash advances based on the value of their stored or produced goods. The federal government is extending the $250,000 interest-free loan limit until the end of the 2026 program year. Farmers can access advances of up to $1,000,000 under this program.
Additional government support for tariffs
The above initiatives complement existing government programs, including:
- The Canada Small Business Financing Program, which helps small businesses get loans of up to $1.15 million through participating lenders.
- The Trade Commissioner Service, which offers information and funding and support programs to help Canadian businesses identify and navigate international opportunities.
- A tariff relief remission process, which would allow businesses to apply for tariff relief if they meet certain eligibility requirements.
Visit BDO’s Tariff Readiness Hub for more information.
Brian Morcombe CPA, CMA, is a partner, indirect tax at BDO Canada.
Fred Wong, CPA, is a senior manager, sales and indirect tax at BDO Canada.
Originally published March 11, 2025 on BDO Canada. This publication was posted based on the information available at the time. Due to the uncertainty of the trade landscape, some rules may have changed since then.
