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September 5, 2025

PM Carney Announces Sectoral Supports

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Federal Team
PM Carney Announces Sectoral Supports

Today, Prime Minister Mark Carney announced new strategic measures to support sectors that are impacted by tariffs and trade uncertainty.

Through these new investments and initiatives, the federal government is seeking to ensure that Canada remains a competitive destination for investment while also generating economic growth opportunities amid uncertainty driven by trade with the U.S. This plan is also intended to enable Canadian industry to diversify relationships in export markets, stabilize supply chains, and ensure Canada is resilient to tariffs and other shocks to the global economy.

Prime Minister Carney announced the following initiatives:

1. Review of the Electric Vehicle Availability Standard

The federal government will conduct an immediate 60-day review of the Electric Vehicle Availability Standard (EVAS), which aims to relieve Canadian automakers from additional potential burdens as they face tariffs from the U.S. The EVAS will also not apply to the 2026 model year.

2. Financing and Relief to Address Tariff Impacts

New financing will be available for sectors impacted by tariffs. Small and medium-sized businesses will be able to access loans up to $5 million, increased from $2 million, from the Business Development Bank's (BDC) Pivot to Grow Program.

More flexible financing options will also be available through the Large Enterprise Tariff Loan Facility, with eligibility expected to be expanded to cover tariff-related costs.

3. Buy Canadian Policy

The federal government will introduce a Buy Canadian Policy by October 2025. The policy will apply to government procurement and spending instruments, such as grants, contributions, loans and other funding streams. The policy would also apply to federal crown corporations and agencies.

It will include measures such as local content requirements and ensuring the federal government buys from Canadian suppliers.

4. Regional Tariff Response Initiative

Currently, several Regional Development Agencies (RDAs) offer $450 million in contributions for tariff-impacted sectors. Today, it was announced that RDAs will have $1 billion over 3 years of financing available, with contributions of up to $1 million to businesses in all sectors that are impacted by tariffs and trade uncertainty. Through this funding, small and medium-sized businesses can access funding that supports their growth, diversifies export markets, and creates new revenue sources.

5. Support for Agriculture and Agri-food

Support for the canola industry was also announced, given anti-dumping duties imposed by China on canola exports. The government will temporarily increase the Advance Payments Program interest-free limit to $500,000 for canola advances. There will also be increased funding available through the AgriMarketing Program to enable producers to diversify their export markets.

6. Strategic Response Fund

The federal government will launch a new $5 billion Strategic Response Fund (SRF) to support businesses affected by trade disruptions to adapt, develop new products, and secure new markets.

7. Trade Diversification Strategy

The federal government is also delivering a Trade Diversification Strategy, which will include initiatives aimed at supporting a 50% increase by 2030 of Canadian exports to overseas markets to replace American markets.

8. Workforce Support Measures

The federal government will update the Workforce Support Strategy. This will include training and income support for up to 50,000 workers affected by tariffs, workforce development support to businesses, new flexibilities in Employment Insurance, and a new digital platform for job seekers.

9. Support for Biofuels Sector

The Clean Fuel Regulations (CFR) will be amended to support domestic biofuel producers. In the interim, a new biofuel production incentive will be launched, which will include $370 million for domestic producers aimed at increasing their competitiveness in international markets.

Next Steps

‍To discuss how these policies and initiatives may affect your organization or to explore next steps in accessing new federal funding opportunities, please contact your Sussex consultant or reach out directly to Devin McCarthy, Partner and Federal Practice Lead.

Devin McCarthy
Partner, Federal Practice Lead
dmccarthy@sussex-strategy.com
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Teodora Durca
Associate, Federal
tdurca@sussex-strategy.com
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