Ottawa rolling out business supports as trade war deepens, Hajdu says

Federal Jobs Minister Patty Hajdu said Monday that Ottawa won't wait for stalled U.S. trade negotiations to conclude before supporting Canadian businesses hit by tariffs. She announced new measures coming "in very short order" to help small and medium-sized businesses during what she called a "very challenging" trade situation.

"This is about protecting, in many cases, small businesses," Hajdu said during an announcement at Mount Royal University in Calgary. "We'll be working with chambers of commerce, with the regional economic development agencies, and many other partners to make sure that we can support our very hardworking small and medium-sized businesses through this very tough time."

The U.S. imposed 50 per cent tariffs on nearly $29 billion worth of Canadian goods under Section 338 of the Trade Act of 1930 beginning Friday. Canada and the U.S. had been close to a trade agreement late last week, but Prime Minister Mark Carney suspended talks Friday evening, citing last-minute U.S. demands that made a deal untenable. Carney has promised "dollar-for-dollar" retaliatory tariffs beginning September 8.

Hajdu said Ottawa is not pinning its economic strategy on the outcome of potential future talks. "We have extremely skilled negotiators at that table, and we're not going to wait around," she said. "We're going to continue... to do the things we need to do: investing in our own capacity, investing in the infrastructure that we need, investing in our businesses."

The minister also announced a new workforce alliance aimed at strengthening Canada's transportation and supply-chain sector, calling it a "cornerstone" of Canada's economy. Allan To, president and CEO of Supply Chain Canada – West, said major planned investments in defence and manufacturing will depend on having resilient supply chains and enough skilled workers. The government has not yet provided details on the specific business support measures or their dollar amounts.