The federal government is gearing a relief package for Canadian workers and businesses, facing the imminent threat of 25% US tariffs. The catch is that the proposal hinges on a simple but politically charged requirement: that the opposition parties refrain—however briefly—from toppling Prime Minister Justin Trudeau’s minority Liberal government.
The multibillion-dollar, pandemic-style bailout measures aim to cushion Canadians from the economic shock of possible tariffs by US President Donald Trump.
According to estimates cited by Premier Doug Ford, Ontario alone could see 500,000 job losses if tariffs escalate. Industry groups fear a worst-case scenario of widespread business closures, reminiscent of the initial lockdown phase of the COVID-19 pandemic.
Because Trudeau prorogued Parliament on January 6—the same day he announced his intention to step down and call a leadership race—no parliamentary sittings can occur before March 24. With Trump threatening tariffs as early as February 1, the government could begin releasing minimal emergency assistance right away, but the more robust relief measures must wait until Parliament returns.
That requirement puts the focus squarely on opposition cooperation: their combined votes could defeat the Liberal government the moment the House reconvenes. If the Liberals fall before the aid legislation is enacted, it is possible that it would take a longer time before an economic package can be assembled can be passed and implemented.
A source told The Globe And Mail that the aid is ready for when the Parliament resumes but the opposition parties need to delay their intention on bringing down the Liberal Party.
The Conservatives, Bloc Québécois, and New Democratic Party have all pledged to defeat the government at the earliest opportunity, putting Trudeau’s Liberal Party on borrowed time.
Former finance minister Chrystia Freeland, who is running for the Liberal leadership, is advocating a $200-billion retaliatory plan should the U.S. impose tariffs. It would ban American companies from bidding on Canadian contracts, including infrastructure and defence procurement, and encourage immediate suspension of all federal purchases of US goods.
Meanwhile, Foreign Affairs Minister Mélanie Joly is meeting with allies in Mexico, Britain, and the European Union, seeking a united front to dissuade Trump from proceeding with the tariffs. She also plans to discuss the issue directly with new US Secretary of State Marco Rubio, highlighting Canada as the “biggest customer” for 36 American states.
Should Trump’s tariffs take effect on February 1, it would take until March 24 before the House can approve and implement something meaningful to arrest the economic effects trickling down from increased tariffs.
Information for this story was found via The Globe And Mail and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
2 Responses
There is no effort to support seniors. Yet they have carried this country. So why not provide support to seniors as the EU do and other countries to seniors. A decent pension. Free travel during non business hours and weekends, heating cost supports, etc. Canada should learn from other countries as a member of the G7, G20 etc. As for health care as seniors age they are refused decent preventitive exams. It seems its better to allow disease develop and cost the country ! Canada could learn a lot from other countries, then seniors would be able to spend.
My wife and myself got no covid relief during the pandemic. Noda nothing. Most people got help but there were other people who got nothing. So I imagine it will be the same if tarrifs happen. It would still cost us but we dont count for anything. Others who dont need it will be first to get help. I am retired and worked all my life.