A new round of US Section 338 tariffs takes effect on Wednesday, August 19, covering roughly 5 percent of Canada’s goods exports. Apparel, electronics and electrical appliances manufacturing are in scope, and RBC Economics put the odds of a full resolution of trade irritants before the deadline as low.
If your employer is in one of those sectors, the thing worth knowing is not the tariff rate. It is that the EI temporary measures protecting laid off workers are scheduled to end on October 10, 2026, and the date your claim is established determines which set of rules applies to you. That is roughly eight weeks away.
Three rules that make a claim worth more right now
In March 2025 the federal government introduced EI Pilot Project No. 24 in anticipation of tariff related job losses. The measures were due to expire on April 11, 2026, but regulations published in the Canada Gazette on April 8 extended them by six months to October 10, 2026.
The first waives the one week waiting period, so benefits are payable from the first week of the claim rather than after an unpaid week. This applies to claims established between March 30, 2025 and October 10, 2026.
The second is the one that matters most financially. It suspends the treatment of monies paid on separation, meaning severance and vacation pay are not treated as earnings for EI purposes. Normally a claimant has to exhaust a severance package before benefits begin. Under the suspension, you can collect EI and keep your severance rather than watching the package delay your first payment by weeks or months. This applies to claims established, or allocations commencing, between March 30, 2025 and October 10, 2026.
The third gives long tenured workers up to 20 additional weeks of regular benefits, raising the maximum from 45 to 65 weeks, with the benefit period extended by the same 20 weeks. This applies to claims starting on or after June 15, 2025 until October 10, 2026.
Government estimates give a sense of the scale. The extension was expected to benefit 632,000 additional claims through the waived waiting period, 136,000 through the suspension of separation payments, and 43,500 through the extra weeks for long tenured workers.
Whether you count as long tenured
The definition is specific and worth checking before you assume it does not apply. A long tenured worker is someone who has received fewer than 36 weeks of EI regular benefits in the last three years and has paid at least 30 percent of the maximum annual EI premium in seven of the last ten years.
The second test is easier to meet than it sounds. Thirty percent of the 2026 maximum premium of $1,123.07 is about $337, which corresponds to roughly $20,700 of insurable earnings. Anyone who worked most of a year at modest wages clears that bar. If you are unsure, your T4 slips from the last decade show the EI premiums you paid.
What the money actually looks like
EI regular benefits pay 55 percent of average weekly insurable earnings. For 2026 the maximum insurable earnings ceiling is $68,900, which caps the weekly benefit at $729.
That cap matters more the more you earn. A worker on $45,000 receives roughly $476 per week, about 55 percent of pay. A worker at exactly $68,900 hits the $729 ceiling. A worker on $95,000 also receives $729, which is closer to 40 percent of their normal earnings. Manufacturing wages in the affected sectors often sit above the ceiling, so the replacement rate is thinner than the headline 55 percent suggests.
Duration runs from 14 to 45 weeks depending on insurable hours and the unemployment rate in your EI economic region, before the long tenured extension is applied. Your postal code determines your region, not your employer’s.
Our Employment Insurance guide sets out the 2026 premium rates, insurable hours requirements and benefit calculations in full.
The option that is not a layoff
Before a layoff happens there is a middle path that many workers have never heard of. Work-Sharing is an EI funded program that lets employees work reduced hours while collecting partial EI benefits for the hours not worked, so the job continues rather than ending.
The tariff related flexibilities are considerably more generous than the standard program. Maximum agreement duration is extended from 38 weeks to 76 weeks, the usual cooling off period between agreements is waived, and eligibility now covers businesses operating in Canada for at least one year with a minimum of two EI eligible employees who agree to reduce hours. Employers no longer need to submit a recovery plan, only to show they are maintaining viability.
Uptake has been substantial. As of February 28, 2026, more than 1,500 Work-Sharing agreements had been approved for tariff affected businesses, covering over 50,000 workers and preventing close to 20,000 layoffs.
There is also a Worker Retention Grant, announced in February 2026, that lets employers with an active Work-Sharing agreement top up the income of participating employees who take training during their non-working hours. Applications run to December 31, 2026.
The important timing note is that Work-Sharing flexibilities were extended to March 31, 2027, which is nearly six months later than the EI claim measures. So the layoff avoidance route stays open well after the claim deadline closes.
Why the October date changes the arithmetic
Consider a worker with 12 years of service laid off in a tariff affected plant, receiving 20 weeks of severance.
With a claim established on or before October 10, the severance is not treated as earnings, so EI can begin immediately with no waiting week. If the worker qualifies as long tenured, entitlement can extend to 65 weeks.
With a claim established after October 10, and assuming the measures are not extended again, the severance would need to be exhausted before benefits begin, an unpaid waiting week would apply, and the extra 20 weeks would not be available. Same job, same severance, materially different outcome.
The measures have already been extended twice, in October 2025 and again in April 2026, so a third extension is plausible. It is not something to plan around.
What to do if a layoff looks likely
File as soon as you stop working, without waiting for your Record of Employment. Delays in filing can cost benefits, and the ROE can be added afterward.
Ask your employer directly whether Work-Sharing has been considered. Many smaller employers are unaware they now qualify under the expanded rules.
Keep filing your biweekly reports on time once a claim is open, since missed reports interrupt payments.
And if you take part in Work-Sharing and your employer later proceeds with a full layoff, you can still file a regular claim at that point.
Frequently Asked Questions
Do these measures only apply to workers in tariff affected industries?
No. Pilot Project No. 24 was introduced in response to tariffs, but the three measures apply to EI claims generally rather than being restricted by sector.
Does severance still get reported to Service Canada?
Yes. You must still report separation payments accurately. The suspension changes how those amounts are treated, not whether you disclose them.
What happens if the measures are extended again?
They have been extended twice already. Any further extension would be made through amendments to the Employment Insurance Regulations and published in the Canada Gazette.
Can I collect EI while working reduced hours under Work-Sharing?
Yes. That is the design of the program. You receive EI benefits for the hours not worked while remaining employed.
How much EI will I actually receive?
Fifty five percent of average weekly insurable earnings to a maximum of $729 per week in 2026. Use our payroll calculator to see your insurable earnings and current deductions.
Sources: Canada Gazette Part II, SOR/2026-64, published April 8, 2026; Employment and Social Development Canada announcements of March 11 and March 20, 2026; CRA EI premium rates for 2026. Tariff timing from RBC Economics, August 14, 2026. Last updated: August 2026.