Canada Launches $5B Fund, Buy Canadian Policy to Shield Firms from US Tariffs

Canadian Prime Minister Mark Carney announced a comprehensive aid package totaling over C$5 billion to support businesses impacted by U.S. and Chinese tariffs. Key measures include suspending the 2026 zero-emission vehicle mandate to relieve automakers, launching a $5 billion Strategic Response Fund to help firms diversify and remain competitive, and implementing a new 'Buy Canadian' policy prioritizing domestic suppliers in federal procurement. The package also features a reskilling program for up to 50,000 workers and incentives for biofuel producers, aiming to bolster economic resilience amid trade tensions. Industry groups like Canadian Manufacturers & Exporters praised the initiatives but emphasized the need for swift, flexible delivery and employer-led training. Carney framed the strategy as vital for Canadian economic sovereignty and investment stability, especially given the challenges posed by tariffs on steel, aluminum, autos, and agricultural exports.