Canada’s Minister of Finance François-Philippe Champagne has 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 US on Canadian products.
Accordingly, to incentivize continued production and investment in Canada, the government will allow automakers that continue to manufacture vehicles in Canada to import a certain number of US-assembled, USMCA-compliant vehicles into Canada, free of the countermeasure tariffs that Canada has imposed. This exclusion is conditional 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.
Additionally, the government intends to provide temporary 6-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. Another relief will come from the new Large Enterprise Tariff Loan Facility (LETL), that will support eligible large businesses that are facing difficulties in accessing traditional sources of market financing, by providing access to liquidity.
Canadian minister said in the weeks and months ahead, additional measures will be brought forward, as needed, to support businesses and workers.
