Government also says more than 700 Work-Sharing Agreements signed with businesses, workers impacted by tariffs
The federal government has extended a temporary Employment Insurance (EI) measure to support workers affected by U.S. tariffs.
Specifically, the adjustment to EI regional unemployment rates will be in place until Oct. 11, 2025.
“Workers are the backbone of the economy, and in the face of tariffs, we are putting forward measures that make a meaningful difference to their lives,” says Patty Hajdu, minister of jobs and families and minister responsible for the Federal Economic Development Agency for Northern Ontario.
“These measures will help workers access the income support they need in the current economic uncertainty. Along with our efforts to create one Canadian economy, with more opportunities for Canadian businesses and workers, we are building the foundations for a [strong Canada].”
Temporary EI measures
On March 23, 2025, the federal government introduced new temporary EI measures to support Canadian workers whose jobs are impacted by the current economic uncertainty caused by these tariffs. These measures include:
- Adjusting the EI regional unemployment rates upward by one percentage point in all EI regions, up to a maximum of 13.1 per cent, with no region seeing an unemployment rate below 7.1 per cent;
- Temporarily waiving the one-week EI waiting period so that workers are able to receive benefits for the first week of unemployment, helping unemployed workers more easily adjust to a drop in income. All claimant types (regular, special, fishing) are eligible for this measure; and
- Suspending the treatment of monies paid on separation (e.g., severance pay), so that these do not need to be used up before claimants are able to start receiving EI benefits.
The measure extended today was set to expire on July 12, while the other two are in effect until Oct. 11, 2025.
Over 290,000 workers are expected to benefit from this extension, according to the federal government.
35% tariffs
The extension to the temporary measures comes after U.S. President Donald Trump announced he will impose a 35 per cent tariff on Canadian goods starting on Aug. 1, according to a BBC report.
Trump has also imposed a global 50 per cent tariff on aluminium and steel imports, and a 25 per cent tariff on all cars and trucks not built in the U.S.
A new 50 per cent tariff on copper imports is also scheduled to take effect next month, according to the report.
“Donald Trump’s announcement of 35 per cent tariffs on our goods coming into force on August 1st is a calculated attack—an attempt to bully our country, break our backbone, and force us to kneel to his agenda,” says Bea Bruske, president of the Canadian Labour Congress (CLC).
In response, Bruske called on the Canadian federal government to:
- Impose counter-tariffs in response to the latest tariff attacks from Trump.
- Introduce export taxes on Canadian energy sold to the U.S.
- Mandate that all national infrastructure projects use Canadian steel, aluminium, and lumber.
- Invest directly in affected workers and communities by enhancing Employment Insurance, expanding Work-Sharing, and providing emergency income supports.
- Launch ambitious, nation-building projects like affordable housing, clean energy, and public transit that create union jobs and build Canadian resilience.
“We must stop reacting and start leading. Canada’s workers are ready to stand up for this country. It’s time our governments stood with them, with boldness and with urgency,” she says.
Work-Sharing Program
Ottawa also introduced additional flexibilities to the Work-Sharing Program in March to allow more businesses and employees to participate in the Program.
The Work-Sharing Program provides EI benefits to eligible employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their employer’s control. This helps employers retain experienced workers and avoid layoffs, and helps workers maintain their employment and skills while supplementing reduced wages with EI benefits.
As of June 28, 2025, Service Canada has signed more than 700 Work-Sharing Agreements with businesses and workers impacted by tariffs.
These agreements cover almost 27,200 workers and are helping to avert almost 10,200 layoffs, according to the federal government.
The CLC previously called on the federal government to “enhance Employment Insurance benefits, expand Work-Sharing programs and provide direct financial support to those at the frontlines of this trade war.”
“This is a time for action. Canadians expect a strong and decisive response that meets this attack with the full weight of our country’s power. This is not a moment for half-measures or empty words,” the group said.
