ARTICLE
24 April 2025

New Federal Support Measures For Canadian Businesses Impacted By U.S. Tariffs

GW
Gowling WLG

Contributor

Gowling WLG is an international law firm built on the belief that the best way to serve clients is to be in tune with their world, aligned with their opportunity and ambitious for their success. Our 1,400+ legal professionals and support teams apply in-depth sector expertise to understand and support our clients’ businesses.
In response to escalating trade tensions with the United States, the Government of Canada has announced a new suite of relief measures aimed at mitigating the impact of retaliatory U.S. tariffs on Canadian businesses.
Canada International Law

In response to escalating trade tensions with the United States, the Government of Canada has announced a new suite of relief measures aimed at mitigating the impact of retaliatory U.S. tariffs on Canadian businesses. On April 15, 2025, the Honourable François-Philippe Champagne, Minister of Finance, unveiled targeted initiatives designed to support key industries, preserve economic stability, and protect Canada's long-term trade interests.

The measures introduced by the federal government reflect a two-pronged strategy: short-term relief to help companies navigate current volatility, and medium-term resilience-building to strengthen Canada's competitive position in global trade. Importantly, the announcement signals Ottawa's continued commitment to defend Canadian economic interests while maintaining diplomatic engagement with its largest trading partner.

Below, we highlight the key support programs outlined in the announcement:

Key measures

1. Performance-based remission framework for automakers

  • Canadian automakers maintaining domestic production and fulfilling planned investments will be permitted to import a specified number of U.S.-assembled, CUSMA-compliant vehicles without incurring countermeasure tariffs.
  • The volume of tariff-free imports will be adjusted based on the level of Canadian production and investment commitments.

2. Temporary six-month tariff relief for critical goods

  • A six-month exemption from countermeasure tariffs will apply to U.S. goods used in Canadian manufacturing, processing, and food and beverage packaging.
  • Relief will also extend to goods used in public health, healthcare, public safety, and national security, benefiting hospitals, long-term care facilities, and emergency services.
  • This aims to provide organizations with a buffer period to reconfigure supply chains and identify domestic alternatives.

3. Launch of the Large Enterprise Tariff Loan Facility (LETL)

  • The LETL program is now accepting applications from eligible large businesses that support Canada's food and energy security, economic stability, and defense.
  • The program offers liquidity to firms facing financing challenges due to trade disruptions, provided they were financially viable before the imposition of U.S. tariffs.
  • Applicants must demonstrate a commitment to maintaining Canadian operations and employment levels.

Next steps

The federal government has indicated that additional measures will be introduced as necessary to support Canadian businesses and workers. In the meantime, businesses seeking more details or wishing to apply for the LETL program can visit the official Department of Finance Canada website or contact the appropriate federal agencies.

Read the original article on GowlingWLG.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More