Manitoba government rolls out millions in tariff relief measures

Manitoba government rolls out millions in tariff relief measures

Supports include $50M for trade resilience loan program, cabinet minister says

The Manitoba government has announced millions of dollars in new relief measures to support businesses and workers as they deal with the effects of an ongoing tariff war between Canada and the U.S.

The support includes additional money to increase existing programs and funds for new initiatives aimed at things such as interprovincial trade missions for Manitoba alcohol producers and providing wage subsidy support for employers.

The new measures also allow businesses to defer provincially administered tax payments from Sept. 1 to Dec. 31, 2026.

"These initiatives altogether are a comprehensive suite of programs to ensure that our economy in Manitoba will weather the storm of Donald Trump's tariffs and become stronger throughout it," Jamie Moses — the minister of business, mining, trade and jobs creation — said at a news conference at the Manitoba Legislative Building on Friday.

"We continue to support labour leaders, continue to support provincial trade barriers being broken down and opening up more markets domestically here in Canada."

The tariff relief measures include $50 million for the Manitoba trade resilience loan program to provide repayable working capital financing at low interest rates. They also include $13.7 million to establish a tariff workforce stabilization and youth employment program to provide wage subsidy supports to employers, and $500,000 to support interprovincial trade missions for alcohol producers and craft breweries, the province said in a news release.

The measures also include a $500,000 increase in the export support program, $500,000 to Canadian Manufacturers and Exporters to expand its made-in-Manitoba initiative, and $250,000 to enhance existing export advisory services to support export readiness and market development, the release said.

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The province said some support will come through the Manitoba Agricultural Service Corporation, which will increase its operating credit guarantee program to $3 million for individuals, corporations and partnerships, and increase the guaranteed portion of loans under that program and the diversification loan guarantee program to 33.33 per cent.

The corporation will also expand eligibility for its diversification loan guarantee program to include grain and oilseed operations and allow "investment in primary agricultural infrastructure in Manitoba" as an eligible purpose, increase the loan amount under that program to $5 million (up from $1.5 million), and work with honey producers to develop and implement targeted supports for that sector, the release said.

The province said the latest escalation in the Canada-U.S. trade war, after talks collapsed, is expected to affect Manitoba industries such as agri-food, transportation, construction, wholesale trade, aerospace, forestry, machinery and beverages.

Moses said the total operational cost of the programming the province is putting forward will be over $100 million. He was flanked by more than a dozen people — including representatives from business, labour and agriculture, and NDP caucus colleagues.

Plan lauded by business, labour, agriculture

Bram Strain, president and CEO of the Business Council of Manitoba, was at the news conference. He said the kinds of programs the government announced will provide the certainty businesses need right now.

"The speed [at] which you are moving, filling gaps that were left by federal programming, that's what this is about," Strain said.

Kevin Rebeck, president of the Manitoba Federation of Labour, said many families of people working in industries such as steel, manufacturing and food production have been worried about what effect tariffs will have. He was glad to see the province recognize the importance of acknowledging those workers alongside businesses.

"For our economy to remain strong and for businesses to succeed, we need to make sure that working people have money in their pockets to spend in our local economy," Rebeck said.

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Jill Verwey, president of Keystone Agricultural Producers, said her organization was also pleased to see the province's commitment to working with sectors hit hard by tariffs, including honey and beekeepers.

"The U.S. is Manitoba's top trading partner, and we value this longstanding, mutually beneficial trading relationship. However, actions that disrupt the free flow of goods carry real cost to both sides of the border, in any tariff level," she said.

The province said in its news release beekeepers will be eligible for all the agriculture business supports announced Friday, including loan guarantees for operations and expansions.

Opposition Leader Obby Khan said he wasn't impressed by the plan Moses unveiled, saying loans businesses have to pay back and a tax deferral that only gives them a few months of breathing room won't help them in the long term.

"We see this repeat pattern over and over again with this government and this minister, right? It's a big flashy announcement, there's no details, and there's no long-term support for these businesses," Khan told CBC's Up to Speed host Faith Fundal on Friday afternoon.

He said businesses need more long-term, reliable relief, and called on the government to do more to remove interprovincial trade barriers.

Caitlyn Gowriluk has been writing for CBC Manitoba since 2019. Her work has also appeared in the Winnipeg Free Press, and in 2021 she was part of an award-winning team recognized by the Radio Television Digital News Association for its breaking news coverage of COVID-19 vaccines. Get in touch with her at caitlyn.gowriluk@cbc.ca.