Ontario Premier Doug Ford has announced a series of tax deferment and rebate initiatives totalling $11 billion to mitigate the impact of tariffs imposed by U.S. President Donald Trump.
The government is postponing certain provincially administered taxes for a period of six months—from April 1 to Oct. 1, Ford announced in an April 7 press release. He said the move will support around 80,000 Ontario businesses.
Ford said the package is a response to U.S. tariffs “causing enormous economic uncertainty.”
“We can’t control President Trump, but we’re in full control of the kind of future we build for ourselves,” Ford said in the release. “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.”
The province is introducing tax relief measures for businesses under its 10 business-related tax programs. These include the Employer Health Tax, Insurance Premium Tax, Gasoline and Fuel Taxes, Mining Tax, Tobacco Tax, International Fuel Tax Agreement, Beer, Wine and Spirits Tax, Retail Sales Tax on insurance contracts and benefit plans, and the Race Tracks Tax.
It is also providing a $2 billion rebate for employers via the Workplace Safety and Insurance Board (WSIB), in addition to the $2 billion rebate that was issued in March.
Tariffs and Shutdowns
Trump announced the introduction of a 25 percent tariff on automobile imports last week. It went into effect on April 3. This new tariff is in addition to the existing 25 percent tariffs imposed on all steel and aluminum imports into the United States, including those from Canada.
Related Stories
Products imported under North America’s free-trade agreement will be exempt from tariffs, while those that do not comply with the agreement will incur a 25 percent tax, the White House said.
The president also announced a baseline tariff of 10 percent on imports from most countries, along with an extensive list of increased tariffs that will apply to several nations.
Ford’s announcement comes as the Stellantis Windsor Assembly Plant shuts down for two weeks beginning today, impacting thousands of employees.
The company is also closing its Toluca Assembly Plant in Mexico for the entire month of April. The shutdowns have resulted in temporary lay-offs for workers at Stellantis’ stamping and transmission facilities in Warren and Sterling Heights, Michigan, and Kokomo, Indiana.
Ford has been critical of Trump’s tariffs for months, saying that they jeopardize Canadian and American jobs, particularly in the automotive sector.
“President Trump calls today Liberation Day. With so many American jobs on the line, I call it Termination Day,” Ford said in an April 2 social media post after the White House’s tariff announcement.
He said in January the tariffs could cost up to 500,000 jobs in Ontario, which is roughly 6 percent of the province’s workforce.
The premier also continues to make appearances on a number of American news networks in a bid to explain how the tariffs are damaging to both countries. Ford has described it as a chance to speak “directly to Americans” about how the tariffs will impact U.S. jobs as well as the price of gas and goods at the grocery store.
Ford has been touting the benefits of tighter Canada-U.S. relations since Trump first broached the subject of tariffs in November. Aside from making a number of U.S. network television appearances, he has been “speaking regularly” to his counterparts in the United States to try to strengthen ties.
The province also released a three-month ad campaign at the beginning of the year, touting the province as the country’s third-largest trading partner and the No. 1 export destination for 17 states. The commercial ran in the United States through the end of March and was expected to reach 100 million viewers.
