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

April 16, 2025, Ottawa — New measures have been announced for Canadian businesses and entities affected by the tariff dispute between Canada and the United States.

The measures, announced by minister of finance François-Philippe Champagne, 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.

There will be a performance-based remission framework for automakers, designed to incentivize continued production and investment in Canada.

This framework will allow automakers that continue to manufacturer vehicles in Canada to import a certain number of U.S.-assembled, CUSMA-compliant vehicles into Canada, free of the countermeasure tariffs Canada has imposed, the government reported in a press statement.

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.

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.

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, the government reported in a media release.