Minister Valdez outlines federal tariff-response supports to keep workers employed and help businesses adapt
Today at Unifor Local 444, the Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism), outlined how the federal government's tariff-response measures will support Ontario's auto workers, parts suppliers and original equipment manufacturers (OEMs). The focus is clear: Keep paycheques coming, help firms manage cash flow, and make the investments needed to stay competitive through the trade disruptions.
What this means for auto workers:
- Training and upskilling: The government is introducing a new $450 million reskilling package to train 50,000 workers through employer-based training, short courses and career counselling. Workers can also access financial assistance while in training to retain their job or fill in-demand jobs, enabling them to continue contributing to the Canadian economy.
- Income support when it's needed most: Starting October 12, 2025 (retroactive to June 15, 2025), 20 extra weeks of EI will be available for long-tenured workers (up to 65 weeks total). This is expected to support about 190,000 long-tenured workers. Additionally, workers will see extensions to April 11, 2026, of the temporary suspension of separation-payment rules and waiver of the one-week waiting period, supporting an additional 700,000 claimants.
- Help to succeed in the changing labour market: The government is investing $382 million to launch new workforce alliances, bringing together employers, unions and industry groups to help businesses and workers succeed in the changing labour market. A new Sectoral Workforce Investment Fund will invest in projects tailored to local job markets to help businesses recruit and retain the workforce they need.
What this means for auto industry businesses:
- Strategic Response Fund: The government is investing $5 billion through the Strategic Response Fund to help firms in sectors impacted by tariffs adapt to the evolving economic context, diversify their capabilities and secure new markets to enable long-term growth.
- Regional Tariff Response Initiative: The government is expanding support to small and medium-sized enterprises (SME), including automotive parts suppliers, through the Regional Tariff Response Initiative by increasing total available funding from $450 million to $1 billion over three years, with flexible terms, and expanding non-repayable contributions to eligible businesses impacted by tariffs across all affected sectors.
- Immediate liquidity relief: The government is increasing the maximum loan size available to SMEs through the Business Development Bank of Canada from $2 million to $5 million. In addition, more flexible financing will be made available to larger firms through the Large Enterprise Tariff Loan Facility.
The automotive industry is one of the largest manufacturing sectors in Canada and is a key driver of economic activity in our country. As we look towards the future, the government is ensuring businesses and workers in the sector can seize opportunities at home and around the world.
