Breaking News: Federal Government Announces $6 Billion Support for Canadian Businesses Amid U.S. Trade War

The Canadian government has just announced a $6 billion relief package to support Canadian businesses feeling the impact of the ongoing trade tensions with the United States.

Through the newly launched “Trade Impact Program,” Ottawa will provide $5 billion over the next two years to help small businesses and startups offset declining U.S. sales and explore new global markets.

This announcement comes as U.S. President Donald Trump temporarily pauses certain tariffs on Canadian products but continues to create uncertainty with fluctuating trade policies.

What’s happening:

• The U.S. has delayed tariffs on goods that qualify under the Canada-U.S.-Mexico Agreement (CUSMA) and temporarily lowered tariffs on Canadian potash to 10% until April 2.
• Canada has responded by pausing its own planned retaliatory tariffs that were set to take effect in the coming weeks.
• Despite the pause, many Canadian businesses are still dealing with confusion, as complex rules of origin under CUSMA determine whether goods qualify for tariff relief.
• Trade experts warn that not all businesses will benefit from these exemptions due to the cost and complexity of compliance.

What Canadian small businesses need to know:

• Tariffs remain in place on key products, with new U.S. tariffs on steel and aluminum starting March 12 and additional “reciprocal tariffs” coming into effect April 2.
• The U.S. may target more Canadian goods, including automobiles, copper, lumber, and agricultural products.
• While some companies may seek tariff exemptions through CUSMA, others may find the paperwork and costs too high, leading them to simply pay the tariffs.

What’s next:

• Ottawa’s $6 billion support package aims to help Canadian businesses:
  • Manage losses from reduced U.S. sales.
  • Identify and enter new international markets.
  • Offset additional costs caused by U.S. tariffs.

Why this matters:

For Canada’s small business owners and startups, staying informed and prepared is key. These trade changes could impact your supply chain, product pricing, and export strategies.

CanadaStartups.org will continue to monitor the situation and provide updates on how you can access government support, funding programs, and resources to keep your business moving forward despite the uncertainty.