Carney Unveils $6.4B Plan, ‘Buy Canada’ To Counter Trump Tariffs

Prime Minister Mark Carney unveiled an industrial strategy with at least $6.37 billion in targeted support and a new “Buy Canada” procurement policy to help workers and businesses withstand President Donald Trump’s tariffs and trade disruptions.

A central move is an EV-mandate pause for the 2026 model year and the launch of a 60-day review. The current mandate targets 20% ZEV sales by 2026, 60% by 2030, and 100% by 2035.

Ottawa will create a $5 billion Strategic Response Fund to help tariff-affected industries adapt and retrain their workforce, directly supporting firms most exposed to US trade actions.

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A comprehensive reskilling package will extend and make more flexible employee insuranve benefits, launch a digital jobs training program, and help 50,000 workers update their skills, aligning labor supply with the strategy’s industrial focus.

To ease financing strains, small and mid-sized businesses will see extended Bank of Canada loans, more flexible repayment options, and $1 billion in additional support over three years, improving access to capital amid trade uncertainty.

The Buy Canada policy will require federal procurement to prioritize Canadian suppliers and will provide a roadmap for provinces and municipalities to follow, channeling government demand toward domestic production.

Agriculture measures include a $370 million biofuel production incentive, amendments to clean fuel regulations to support the biofuels industry, and relief for canola to help offset China’s 75.8% tariff on Canadian shipments.

“Canada is building the strongest economy in the G7, one that is less reliant on foreign powers and more resilient in the face of global shocks,” Carney said. “In the face of uncertainty around the world, we are ensuring that our workers and businesses will prosper by building Canada’s strength at home.”