Canada’s Department of Finance has unveiled new support measures on 15 April 2025 aimed at assisting Canadian businesses impacted by tariffs imposed by both the US and Canada. The measures were announced by Minister of Finance, François-Philippe Champagne, for Canadian businesses and entities affected by the tariff dispute between Canada and the United States which include the remission of some of the countermeasure tariffs announced by Canada in response to the tariffs imposed by the US on Canadian products.

Minister Champagne announced a performance-based remission framework for automakers, designed to incentivise continued production and investment in Canada. This will allow automakers that continue to manufacture vehicles in Canada to import a certain number of US-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.

The government also intends to provide temporary six-month relief for goods imported from the US 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 US 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.

Lastly, the new Large Enterprise Tariff Loan Facility (LETL), as announced by the Prime Minister in March, is now accepting applicants. This programme 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 US 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 support are in place across all jurisdictions.

“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 US suppliers. This will help make our economy stronger and more resilient,” François-Philippe Champagne said. 

Earlier, on 30 January 2025, US President Donald Trump imposed a 25% tariff on imports from Canada.

On April 2, 2025, Trump signed an executive order imposing a 10% baseline tariff on imports from all countries, including Canada. This move established reciprocal tariffs targeting nations with significant trade deficits with the United States. However, the reciprocal tariffs were postponed for 90 days, excluding the tariffs imposed on China.

Canada retaliated by announcing new countermeasures in response to the tariffs introduced by Trump on 2 April 2025.