Government announces tariff relief, new loan facility for Canadian businesses

The federal government is introducing new measures to help Canadian businesses impacted by the ongoing tariff dispute with the United States.

Finance Minister François-Philippe Champagne announced a series of initiatives, including the remission of certain countermeasure tariffs Canada imposed in response to U.S. levies on Canadian goods.

The measures include a performance-based remission framework for automakers, aimed at encouraging continued investment and production in Canada. Automakers will be allowed to import a limited number of U.S.-assembled, CUSMA-compliant vehicles tariff-free—provided they maintain Canadian manufacturing operations and follow through on planned investments. The number of vehicles allowed under this exemption will decrease if production or investment in Canada is reduced.

A six-month temporary tariff relief is also being introduced for U.S. goods used in Canadian manufacturing, processing and food and beverage packaging, as well as items that support public health, health care, public safety and national security.

“This provides immediate relief to a broad cross-section of Canadian businesses that must rely on U.S. inputs to support their competitiveness,” the government said in a release.

In addition, the Large Enterprise Tariff Loan Facility (LETL), originally announced in March, is now accepting applications. It offers liquidity support to eligible large businesses in sectors critical to Canada’s food, energy and economic security, particularly those facing difficulty securing traditional financing.

“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,” Champagne said. “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.”

More measures are expected in the coming months, with the federal government committing to work with provinces and territories to ensure a coordinated response.