'We can't control President Trump, but we're in full control of the kind of future we build for ourselves'
Ontario is committing a total of $11 billion to support employers and workers in the face of mounting U.S. tariffs on Canadian goods.
As part of the initiative, the provincial government is deferring select provincially administered taxes for six months—from April 1 to October 1, 2025. All deferred taxes must be paid in full by the October deadline.
The relief applies to businesses remitting taxes under Ontario’s 10 business-focused tax programs, including the Employer Health Tax, Insurance Premium Tax, Gasoline Tax, Fuel Tax, Mining Tax, Tobacco Tax, International Fuel Tax Agreement, Beer, Wine and Spirits Tax, the Retail Sales Tax on Insurance Contracts and Benefit Plans, and the Race Tracks Tax.
According to the provincial government, the tax deferral will provide about $9 billion in cash flow—helping businesses retain employees and navigate ongoing economic disruptions.
Additionally, Ontario is distributing a further $2 billion rebate through the Workplace Safety and Insurance Board (WSIB), on top of the $2 billion rebate issued in March.
The risk of global recession just went up to 60% following the widespread tariffs imposed by US President Donald Trump, according to a recent report from J.P. Morgan.
“In the face of President Trump’s attacks on Ontario’s economy, our government will do whatever it takes to protect Ontario workers and businesses. Today’s measures will help give workers and businesses the support they need in the face of growing economic uncertainty,” said Premier Doug Ford.
“We can’t control President Trump, but we’re in full control of the kind of future we build for ourselves. The best way to protect Ontario is to build the most competitive economy in the G7, breaking down internal trade barriers and diversifying our trade so we can build a more resilient, prosperous and secure province.”
Ontario also vowed to break down internal trade barriers and strengthen the province’s economy, “including by speeding up timelines and approvals for development, as well as diversifying trading partners and helping businesses if they need to retool and retrain workers for new customers in new markets”.
Counter tariffs for auto workers
Recently, Prime Minister Mark Carney announced new countermeasures against Trump’s recent tariffs. These include:
- Twenty-five per cent tariffs on non-Canada-United States-Mexico Agreement (CUSMA) compliant fully assembled vehicles imported into Canada from the United States.
- Twenty-five per cent tariffs on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the United States.
- Canada’s intention to develop a framework for auto producers that incentivizes production and investment in Canada.
Every single dollar raised from these tariffs will go directly to support our auto workers, according to the prime minister.
“The global economy is fundamentally different today than yesterday,” said Carney. “We must respond with purpose and force and take every step to protect Canadian workers and businesses against the unjust tariffs imposed by the United States, including on automobiles. We will never cease to defend the interests of Canadians, safeguard our workers and businesses, and continue our pursuit to build the strongest economy in the G7.”
Carney plans to create a $2 billion Strategic Response Fund that will boost Canada’s auto sector’s competitiveness and protect manufacturing jobs, he previously said.
Tariffs war between Canada and US
The U.S. has imposed numerous tariffs on Canada this year, according to the prime minister.
On March 4, 2025, U.S. tariffs of 25% on Canadian goods and 10% on energy and potash exports from Canada to the U.S. came into effect. On March 12, 2025, the U.S. imposed tariffs of 25% on Canadian steel and aluminum products.
On April 3, U.S. tariffs of 25% on Canadian automobiles came into effect, targeting the auto industry and the more than 500,000 Canadians this industry supports across the country.
The U.S. also intends to apply 25% tariffs on certain automobile parts before May 3. Noted the prime minister. Under the U.S. tariffs certain exclusions linked to U.S. content may be available, specifically, the application of the 25% tariff only to the value of the non-U.S. content in automobiles and auto parts that qualify for preferential tariff treatment under CUSMA.
Meanwhile, Canada has responded to the U.S. imposition of tariffs on Canadian goods by introducing a suite of countermeasures designed “to compel the U.S. to remove the tariffs as soon as possible,” said the prime minister. These countermeasures include:
- Imposing tariffs of 25% on a valued $30 billion in goods imported from the U.S., effective March 4, 2025.
- Launching a public comment period on potential counter tariffs on additional imports from the U.S.
- Imposing, as of March 13, 2025, 25% reciprocal tariffs on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion to match U.S. tariffs on steel and aluminum dollar-for-dollar.
Recently, Canada has also taken its message directly to the American public. According to The New York Times, digital billboards have recently appeared across major U.S. cities, including Pittsburgh, reading: “Tariffs are a tax on hardworking American workers.”
Previously, Carney vowed that Canada will retaliate to tariffs issued by Trump "with purpose and with force,” according to a BBC report.
