Canada announces new support for Canadian businesses affected by U.S. tariffs

From: Department of Finance Canada

News release

April 15, 2025 - Ottawa, Ontario - Department of Finance Canada

The Minister of Finance, the Honourable François-Philippe Champagne, today announced new measures for Canadian businesses and entities affected by the tariff dispute between Canada and the United States. These measures include the remission of some of the countermeasure tariffs announced by Canada in response to unjustified tariffs imposed by the U.S. on Canadian products.

First, Minister Champagne announced a performance-based remission framework for automakers, designed to incentivize continued production and investment in Canada. In recognition of the integrated nature of the North American automotive sector, this will allow automakers that continue to manufacture vehicles in Canada to import a certain number of U.S.-assembled, CUSMA-compliant vehicles into Canada, free of the countermeasure tariffs that Canada has imposed.

The remission granted to these companies is contingent on these automakers continuing to produce vehicles in Canada and on completing planned investments. The number of tariff-free vehicles a company is permitted to import will be reduced if there are reductions in Canadian production or investment.

Second, the Minister announced that the government intends to provide temporary 6-month relief for goods imported from the U.S. that are used in Canadian manufacturing, processing and food and beverage packaging, and for those used to support public health, health care, public safety, and national security objectives. This provides immediate relief to a broad cross-section of Canadian businesses that must rely on U.S. inputs to support their competitiveness as well as to entities integral to Canadians’ health and safety, such as hospitals, long-term care facilities and fire departments. The remission is provided on a time-limited basis to provide businesses and entities with additional time to adjust their supply chains and prioritize domestic sources of supply if available.

Third, the new Large Enterprise Tariff Loan Facility (LETL), as announced by the Prime Minister in March, is now accepting applicants. This program will support eligible large businesses—including those that contribute to Canada’s food security, energy security, economic security and national security—that are facing difficulties in accessing traditional sources of market financing, by providing access to liquidity. This will help employers that were viable before the recent U.S. trade actions to help sustain their operations and return to financial stability. Companies will be required to make efforts to maintain jobs and sustain business activities in Canada. Those that were already involved in insolvency proceedings before this crisis will not be eligible.

In the weeks and months ahead, additional measures will be brought forward, as needed, to support businesses and workers. The federal government will also continue to work closely with provinces and territories to ensure complementary supports are in place across all jurisdictions.

Quotes

“From day one, the government has reacted with strength and determination to the unjust tariffs imposed by the United States on Canadian goods. We continue to stand by Canada’s workers and businesses. Today, we’re giving Canadian companies and entities more time to adjust their supply chains and become less dependent on U.S. suppliers. This will help make our economy stronger and more resilient.”

- The Honourable François-Philippe Champagne, Minister of Finance

Quick facts

  • On March 4, the U.S. imposed tariffs on Canadian goods under the International Emergency Economic Powers Act. Canada responded by imposing 25% tariffs on $30 billion in goods imported from the U.S., including spirits, appliances, apparel, footwear, motorcycles, cosmetics, and certain pulp and paper products.

  • On March 12, the U.S. imposed tariffs on all steel and aluminum products. Canada responded by applying 25 per cent reciprocal tariffs on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion. The list of additional products affected by counter tariffs includes tools, computers and servers, display monitors, sport equipment, and cast-iron products.

  • On April 3, U.S. tariffs of 25 per cent on Canadian automobiles came into effect. They apply to the non-U.S. content of the goods if they are CUSMA-compliant. Canada responded by imposing on April 9, 25 per cent tariffs on non-CUSMA compliant U.S.-made vehicles, and on the non-Canadian and non-Mexican content of CUSMA compliant U.S.-made vehicles. 

  • Following the initial imposition of Canadian surtaxes on March 4, the government outlined a framework for exceptional relief from Canada’s retaliatory surtaxes.  The framework outlines the conditions under which the government will consider providing relief, including: i) to address situations where goods used as inputs cannot be sourced domestically, either on a national or regional basis, or reasonably from non-U.S. sources; and ii) to address, on a case-by-case basis, other exceptional circumstances that could have severe adverse impacts on the Canadian economy.

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Media may contact:

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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