By Paul Vieira
OTTAWA--Canada on Friday introduced a series of measures to aid sectors under pressure from the Trump administration's sectoral tariffs as the Liberal government tries to reverse economic deterioration.
Prime Minister Mark Carney said this represents a pivot in its industrial strategy that needs to adapt given the significant revamp to global trade. President Trump's measures, Carney said, have forced firms to shed workers, disrupted supply chains, and prompted companies to delay or scrap investment plans.
"These initiatives will help workers acquire new skills and business retool their production and diversify their products, while spurring more domestic demand for Canadian businesses," Carney said, according to a statement.
The measures come as indicators point to a sharp slowdown in economic activity, and the weakest job market in nine years, excluding the pandemic period, reflecting the damage being done by trade-policy uncertainty. While the bulk of Canadian exports are entering the U.S. duty free, some key sectors--steel, aluminum, automotive and forest products--face hefty tariffs of up to 50% on their U.S.-bound shipments.
Employment data released Friday suggested the Canadian economy shed nearly 66,000 jobs, and the unemployment rate surpassed 7%. Since January, or when Trump came to power, Canada has lost about 39,000 jobs. Specifically, the country's manufacturing sector axed 19,000 jobs in August, and 58,000 since January.
The country's gross domestic product shrank 1.6% on an annualized basis in the second quarter due to a sharp drop in exports.
Canada is the lone Group of Seven economy without a trade deal with the Trump administration due to its tariff policy. The European Union, Japan and the U.K. secured lower tariffs on some sectors, like automotive.
Among the measures Carney introduced include billions to affected sectors, a new Buy-Canadian policy that compels the use of domestic steel and aluminum on government-funded projects, and immediate liquidity for small and mid-sized firms.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
09-05-25 1132ET
