The Ontario government announced an expansion of its tariff relief program Thursday after US President Donald Trump banned imports of alcoholic drinks, dairy products and motorcycles from Canada.
Trump also announced new 50 per cent tariffs on Canadian products such as mattresses and motorboats.
The provincial government announced that it would make newly impacted products eligible for its $1-billion Protect Ontario Financing Program and the $150-million Ontario Together Trade Fund.
The latter targets small- and medium-sized Ontario businesses and provides grants or loans, while the former will dole out loans to cover payroll, lease and utility payments to tariff-impacted businesses.
After trade talks deteriorated, the US imposed 50 per cent tariffs on $28 billion worth of Canadian exports on Aug. 22. Prime Minister Mark Carney said he walked away from negotiations because Trump’s demands were too steep and he was treating Canada as a “subsidiary of the United States.”
Carney then announced a “dollar-for-dollar” tariff response, which came into effect after Labour Day on Sept. 8. It targets $27.6 billion worth of US goods and includes a $7.5-billion support package for workers. Trump then retaliated with new measures to which the Ford government is now responding.
Hundreds of products on the US list will affect large sectors like dairy, but Corinne Pohlmann, executive vice president of advocacy with the Canadian Federation of Independent Business, told Canada’s National Observer that this round of tariffs hits small businesses in an unprecedented way.
Also on Thursday, Ontario Premier Doug Ford announced changes to his cabinet, framing the shift within the context of the trade war. He moved Minister David Piccini, who is currently being investigated for his handling of the $2.5-billion Skills Development Fund, from labour to infrastructure. Also among the shifts was the creation of a new position: associate minister of artificial intelligence adoption.
Ford said the changes will ensure the province supports workers long-term amid the escalating trade war.
“President Trump is once again taking aim at Ontario’s economy with his latest round of tariffs and anti-trade measures,” said Ford.
“Ontario won’t back down. We’re preparing for the long haul, and that means putting the right team in place to protect Ontario workers and jobs today while building the most competitive, resilient and self-reliant economy in the G7 that can withstand whatever challenges come our way.”
John Fraser, interim leader of the Ontario Liberals, said the province has the “biggest, most bloated cabinet in Ontario’s history.” Almost half of governing Progressive Conservatives hold a caucus position, which the Canadian Taxpayers Federation has equated to a “gravy train.”
Fraser said expanding the support for businesses is “sensible,” but it only “opens the door without putting new money on the table.”
“Help needs to be real, easy to access, and there when jobs are on the line, not months later. Ontario will need to do more, and we’ll keep pushing for it,” he said.
Ontario Greens Leader Mike Schreiner called it a “half-hearted cabinet shuffle,” adding, “Ford and his ministers are spending our tax dollars lining the pockets of the rich and powerful and living large behind the scenes.”