Ontario Unveils $11 Billion Relief Package to Mitigate Impact of U.S. Tariffs
In response to recent U.S. tariffs affecting key industries, Ontario Premier Doug Ford has announced an $11 billion relief plan aimed at supporting workers and businesses across the province. This initiative seeks to alleviate economic challenges and preserve employment amid escalating trade tensions.
Key Components of the Relief Plan:
- Tax Deferrals: Effective April 1, 2025, Ontario will defer select provincially administered taxes for six months, providing approximately $9 billion in cash flow relief to about 80,000 businesses. Taxes included in this deferral are:
- Employer Health Tax
- Insurance Premium Tax
- Gasoline Tax
- Fuel Tax
- Tobacco Tax
- International Fuel Tax Agreement
- Beer, Wine & Spirits Tax
- Retail Sales Tax on Insurance Contracts and Benefit Plans
- Race Tracks Tax
- Mining Tax All deferred taxes must be paid by October 1, 2025. Workplace Safety and Insurance Board (WSIB) Rebates: An additional $2 billion rebate will be issued to safe employers to support businesses in retaining workers. This follows a similar $2 billion rebate distributed in March.
Premier Ford emphasized the province’s commitment to safeguarding its economy, stating, “We can’t control President Trump, but we’re in full control of the kind of future we build for ourselves.”
The relief measures come in the wake of U.S. tariffs imposed on Canadian steel, aluminum, and certain auto exports. These tariffs have raised concerns about potential job losses and economic instability in Ontario’s manufacturing and mining sectors. The provincial aid complements the federal government’s earlier announcement of $6.5 billion in support measures to help businesses access new markets, manage losses, secure loans, and avoid layoffs.
By implementing these measures, Ontario aims to provide immediate financial relief to affected businesses, ensuring they have the necessary resources to navigate the current economic challenges and maintain workforce stability.
