After shelling out an $82 billion stimulus package in 2020 to keep Canadian households and businesses afloat, the feds are gearing up for what could be round two.
Driving the news: Ottawa is preparing to roll out a multibillion-dollar relief package to offset the economic impact of U.S. tariffs on Canadians, if necessary. The size of the package will reportedly depend on the scope of the tariffs, which could come into effect as soon as Feb. 1.
- The package is meant to help Canadians who have been laid off, allow affected businesses to stay open, and ease the pressure of higher consumer prices.
- But there’s one major caveat: any big spending would have to go through Parliament, which doesn’t resume until March 24, and will need support from opposition parties.
Why it matters: Around 10% of all employment in Canada depends on companies that export goods to the U.S. In Ontario alone, Premier Doug Ford has said he expects the province to lose up to 500,000 jobs if a 25% tariff on Canadian goods is levied.
- Meanwhile, the Canadian Chamber of Commerce estimates that tariffs could drive up consumer prices and cost the average Canadian household an extra $1,900 a year.
What’s next: Foreign Affairs Minister Mélanie Joly — who is in Washington today meeting with Secretary of State Marco Rubio — says that Ottawa’s top priority is to negotiate with the U.S. and avoid the tariff fiasco altogether.—LA