Ottawa, Ontario invest $7.2 million to retrain workers hit by tariffs

‘Protecting Ontario means making sure workers have the skills to succeed no matter what comes our way’

Ottawa, Ontario invest $7.2 million to retrain workers hit by tariffs

The federal and Ontario governments are jointly investing more than $7.2 million to help over 500 workers in northern Ontario retrain and transition into in-demand careers. 

The funding responds to ongoing tariff and trade pressures affecting the steel, manufacturing and forestry sectors.

"As tariffs and global economic pressures continue to affect workers and communities, no one will be left behind," said Patty Hajdu, federal Minister of Jobs and Families, in the release. David Piccini, Ontario's Minister of Labour, Immigration, Training and Skills Development, added that "protecting Ontario means making sure workers have the skills to succeed no matter what comes our way."

Prime Minister Mark Carney recently pledged to defend Canadian workers from US tariffs on, as a fresh 10% US levy on Canadian goods is now putting immediate pressure on HR leaders to reassess workforce plans and retraining strategies.

Where would the funding go?

The money flows through the Canada-Ontario Workforce Tariff Response to four organizations in Sault Ste. Marie, Thunder Bay and Kenora.

The Ontario government is delivering the funding through Skills Advance Ontario, which pairs employers with training providers. Algoma Steel Inc. is receiving $1,486,153 to upskill 250 employees as it shifts to Electric Arc Furnace steelmaking.

The Canadian Skills Training and Employment Coalition is receiving $1,550,992 to train 120 manufacturing workers in trades such as welding, combining safety certification with paid placements. 

Confederation College is getting $2,780,400 to retrain 110 tariff-impacted forestry workers, while Washagamis Bay Investment Corporation is receiving $1,395,150 to train 40 mostly Indigenous jobseekers from the Treaty #3 region.

This is part of a broader $228.8-million initiative meant to help up to 27,000 workers provincewide retrain in sectors including softwood lumber, steel and automotive manufacturing, the release said.

'Essential' investment for workers

Employers receiving funding welcomed the support. 

"We thank the governments of Canada and Ontario for this investment in our workforce," said Rajat Marwah, CEO of Algoma Steel Inc., calling the upskilling effort "essential to maintaining our competitiveness." Ken Delaney of the Canadian Skills Training and Employment Coalition said the grant has let the organization "give laid off industrial workers more options for training and transitioning to a new career."

Michelle Salo, President of Confederation College, said the college is "grateful to the Ontario government for this investment," which will help workers "build practical, in-demand skills" — a reminder that publicly funded pipelines can supplement internal reskilling budgets during layoffs tied to trade disruption.

The Ontario government notes that Skills Advance Ontario accepts applications on an ongoing basis, meaning employers facing tariff-related restructuring elsewhere in the province may still access similar support. 

Range of tariffs on Canadian goods

The federal government has also signed similar agreements to support tariffs-hit workers in British Columbia, Manitoba and Newfoundland and Labrador.

According to the United States’s White House, new 50% tariffs on Canadian goods will be in effect starting Aug. 19, 2026. Goods covered include:

  • alcoholic beverages including wine, beer, rum, vodka, brandy, tequila and whiskies; 

  • milk and cream

  • whey

  • molasses and natural honey

  • ice hockey and field hockey equipment (excluding balls and skates)

  • plywood

  • essential oil

  • perfumes

  • candles

  • dog leashes

  • wigs. 

The tariff applies even to goods covered under the Canada-United States-Mexico Agreement (CUSMA). Energy, potash and goods already subject to Section 232 tariffs are excluded. 

The US refused on July 1 to renew the CUSMA for another 16 years, extending a period of trade uncertainty that the Bank of Canada has already linked to five straight quarters of declining business investment.

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