'We will ensure Ontario's economy can remain competitive and resilient for generations to come'
HR professionals and business leaders will get some more business support from Ontario amid the new U.S. tariffs.
The Ontario government announced that it is immediately broadening eligibility for the Protect Ontario Financing Program (POFP), a $1-billion loan fund for businesses facing tariff-related working capital challenges such as payroll, lease and utility payments.
The expansion responds to new U.S. tariffs under section 338 of the Tariff Act, 1930, which took effect Aug. 22 and apply duties of up to 50% on a broad range of Canadian goods, the first use of that section by the U.S., the province said.
Premier Doug Ford said the province would use all available tools to protect jobs. "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," Ford said.
Minister of Economic Development, Job Creation and Trade Vic Fedeli said the change is meant to deliver immediate relief. "By broadening eligibility for the Protect Ontario Financing Program and advocating for a fair deal, we will ensure Ontario's economy can remain competitive and resilient for generations to come, while advancing meaningful, immediate relief for our businesses and their workers today," Fedeli said.
The expansion is part of a broader $30-billion provincial tariff relief plan.
‘Important steps’ for small businesses
The federal government announced a $7.5-billion package of new and enhanced supports, building on nearly $25 billion in trade-related assistance provided since the original round of US tariffs began in 2025.
The most operationally significant measure for people managers is a new suite of Rapid Response Supports for Workers and Employers, totalling $3.5 billion.
Canadian Manufacturers & Exporters welcomed the federal package but said governments must do more.
CME president and CEO Dennis Darby said statement that the government's focus on keeping workers attached to employers and providing liquidity reflects priorities CME has raised, calling the RTRI expansion, broader BDC financing and the new Workforce Retention and Retraining Program "important steps, particularly for small and medium-sized manufacturers facing immediate pressure."
Darby said Canada has every right to respond to unjustified U.S. tariffs, but cautioned that counter-tariffs can raise costs for manufacturers dependent on U.S. inputs, particularly smaller firms with limited ability to shift supply chains. He called for a stronger push to buy Canadian, fewer internal trade barriers and faster investment in productivity and technology.
Darby said success will depend on speed, simplicity and scale, with clear eligibility rules and rapid approvals matching the size of the disruption. He said the measures will help manufacturers weather the immediate shock but cannot replace stable, tariff-free trade, adding that CME will keep working with Ottawa to ensure the programs deliver support quickly.
Canada moved to impose sweeping counter-tariffs on approximately $27.6 billion worth of American goods on Tuesday, after trade negotiations between Ottawa and Washington collapsed late Friday and the US held firm on a broad 50-per-cent duty regime targeting Canadian exports.
