Tuesday, September 9, 2025
The global trade landscape is rapidly changing, as the United States fundamentally transforms all of its trading relationships. The effect is profound on Canada—displacing workers, disrupting supply chains, forcing companies to rethink where they source their materials and products, and causing uncertainty that is curbing investment. While Canada has the best deal of any U.S. trading partner—we cannot rely on its most important trade relationship as we once did.
The federal government is building a new industrial strategy to meet this moment and transform the economy—from one of reliance on specific trade partners to one that is more resilient to global shocks, built on the solid foundation of strong Canadian industries, and bolstered by diverse international trade partners.
Prime Minister Mark Carney has announced a series of new, strategic measures for workers and businesses most impacted by U.S. tariffs and trade disruptions. These initiatives are expected to help workers acquire new skills and businesses retool their production and diversify their products, while spurring more domestic demand for Canadian businesses.
“We cannot control what other nations do. We can control what we give ourselves—what we build for ourselves. Canada is building the strongest economy in the G7, one that is less reliant on foreign powers and more resilient in the face of global shocks,” stated Carney. “In the face of uncertainty around the world, we are ensuring that our workers and businesses will prosper by building Canada’s strength at home.”
Building on previously announced measures to help transform the Canadian steel and softwood lumber industries, the following new initiatives were recently announced, including: the introduction of a new reskilling pakage for up to 50,000 workers, an investment of $5 billion through a new fund with flexible terms to help all sectors impacted by tariffs adapt, a new policy to ensure the federal government buys from Canadian suppliers, and more. The full list of measures is available here. To drive transformation, the government has launched the Major Projects Office to fast-track nation-building projects.
Since this announcement, the Prime Minister and several of his Cabinet members have avoided answering questions about whether Canada will achieve its Paris Agreement climate targets by 2030.
Executive Director of Climate Action Network Canada, Caroline Brouillette warns that dismantling climate policy is a mistaken approach to ensuring Canada’s economic competitiveness.
“In 2025, competitiveness means ensuring that Canadian workers, industries and citizens are fully equipped and well positioned to thrive in markets that are shifting to the technologies of the future,” says Brouillette. “Climate policies are not threatening our economy. Rather, these crucial policies—and more—are the necessary building blocks of the future-oriented industrial strategy that will benefit Canadians.”
However, Prime Minister Carney has hinted that he’ll soon release a “climate competitiveness strategy” that insiders expect will boost industrial carbon pricing while cutting other emission reduction policies. Stay tuned.
Featured photo credit: Getty Images
