New retention program absorbs Work-Sharing and adds up to $1,000 per participant for training
Ontario businesses whose exports fall under new 50 percent US tariffs can now apply for provincial loans covering payroll, lease payments, and utility payments, after the province broadened eligibility for the Protect Ontario Financing Program with immediate effect.
Ottawa separately committed $3.5bn to a suite of Rapid Response Supports for Workers and Employers, per a Department of Finance Canada backgrounder published August 25.
The Ontario program, first launched in August 2025, provides up to $1bn in loans to Ontario-based businesses facing tariff-related working capital challenges.
Eligibility now reaches exporters caught by the US section 338 tariffs alongside businesses already subject to US section 232 tariffs on steel, aluminum, copper, and automotives, the province said in its announcement.
"Our government will do whatever it takes to stand up for Ontario workers and protect their jobs and paycheques as we face down this latest economic attack from President Trump," Premier Doug Ford said in the Ontario government release.
Plan sponsors managing layoffs face four changed Employment Insurance rules under the federal package.
Finance Canada is extending by one year the temporary EI measure waiving the one-week waiting period, and extending by one year the measure allowing workers to receive EI benefits without first using up separation payments such as severance or vacation pay.
A further eight-month extension applies to the temporary measure providing an extra 20 weeks of EI regular benefits for long-tenured workers, and a new one-year measure will stop penalising workers who voluntarily left jobs in recent months, as long as their most recent job loss is through no fault of their own.
Employers retaining staff through the disruption gain a consolidated tool.
According to the Finance Canada backgrounder, a new Workforce Retention and Retraining Program will combine the existing EI Work-Sharing program and Worker Retention Grant into a single, streamlined offering, with employers eligible for additional funds covering training and administrative costs of up to $1,000 per participant.
The federal worker and business package totals $7.5bn and builds on nearly $25bn in supports provided since the US tariffs took effect, Finance Canada said.
On the business side, the package includes:
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An additional $1.5bn through the Regional Tariff Response Initiative
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A $500m liquidity stream under BDC's Pivot to Grow program
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$2bn through a new Canada Strong Diversification Fund
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Added flexibility in the Large Enterprise Tariff Loan facility, run by the Canada Enterprise Emergency Funding Corporation
Canada will impose counter-tariffs of 15, 25, and 50 percent effective September 8 on products covering $27.6bn in imports from the US, matching the American rates product by product.
The US section 338 tariffs took effect on August 22, after a three-day suspension moved the date from August 19, trade compliance publisher Zonos reported.
Job losses are expected to concentrate in three provinces.
British Columbia jobs and economic development minister Brenda Bailey told CTV News that workers in British Columbia, Quebec, and Ontario will feel the effects most acutely, with job losses anticipated across multiple sectors.
"It's going to be rough," Bailey said in the same interview.
Two earlier labour-market agreements are already running.
CBC News reported in March that the federal and British Columbia governments launched a $70.4m Canada–British Columbia Workforce Tariff Response program, targeting more than 8,000 workers needing retraining, upskilling, and employment assistance over three years, with access through WorkBC centres.
Canada and Quebec reached a $122.5m agreement to support tariff-impacted workers in April 2026, according to a joint announcement carried by CNW.
Ontario's financing program sits inside a $30bn provincial tariff relief and support plan.
The province said the $150m Ontario Together Trade Fund has supported 89 companies on projects amounting to nearly $1bn in total investments, while the $40m Trade-Impacted Communities Program has produced seven announced projects valued at $5.6m.
The Ontario Made Manufacturing Investment Tax Credit is expected to provide an estimated $2.7bn in income tax support over five years, per the same release.
Vic Fedeli, Ontario's minister of economic development, job creation and trade, said the province is broadening eligibility for the Protect Ontario Financing Program and pressing for a trade agreement.
Both steps aim to deliver relief for businesses and workers now while keeping Ontario's economy competitive, he said in the provincial announcement.
Section 338 of the US Tariff Act, 1930 operates through a different legal mechanism than the section 232 national security tariffs already in place on steel, aluminum, copper, and autos, customs brokerage GHY International noted.
Ontario said this is the first time the US has imposed tariffs under section 338.
