**Canada**: The Canadian government unveils a six-month tariff remission and a new loan facility to aid businesses impacted by the US tariff dispute, focusing on key industries and maintaining employment amid ongoing trade tensions.
The Canadian government has introduced a series of measures aimed at supporting domestic businesses affected by the ongoing tariff dispute with the United States. Finance Minister François-Philippe Champagne outlined these new steps designed to provide relief and bolster the competitiveness of Canadian companies reliant on US imports.
Among the key initiatives is a temporary six-month remission of certain countermeasure tariffs imposed by Canada in response to what it deems ‘unjustified’ tariffs levied by the US on Canadian products. This tariff relief specifically targets goods imported from the United States that are essential to Canadian manufacturing, processing, food and beverage packaging industries, as well as those used to support public health, health care, public safety, and national security objectives.
According to an official government release, “This provides immediate relief to a broad cross-section of Canadian businesses that must rely on US inputs to support their competitiveness.” The remission is intended to be time-limited, allowing companies additional time to adjust their supply chains and prioritise sourcing domestically where possible.
Further financial support is being made available through the recently launched Large Enterprise Tariff Loan Facility (LETL), which started accepting applications following its announcement by Prime Minister Justin Trudeau in March. This programme is designed to assist eligible large businesses facing challenges in obtaining traditional market financing due to the trade dispute. It focuses on enterprises that play crucial roles in Canada’s food, energy, economic, and national security sectors, providing them with access to liquidity to sustain operations and regain financial stability.
An important condition of the LETL programme requires participating companies to commit to maintaining employment levels and continuing business activities within Canada. Businesses already involved in insolvency proceedings prior to the onset of the tariff dispute are deemed ineligible.
Minister Champagne indicated that the government intends to introduce additional support measures as necessary in the “weeks and months ahead” to further aid businesses and workers affected by the dispute. Moreover, the federal government will continue collaborating closely with provincial and territorial authorities to ensure that complementary support mechanisms are accessible across all regions.
These developments reflect Canada’s ongoing efforts to manage the economic impact of its trade disagreements with the US, seeking to mitigate disruptions for domestic industries and preserve economic stability. The Fibre2Fashion News Desk is reporting on these latest government initiatives aimed at addressing the challenges faced by Canadian businesses amidst the tariff tensions.
Source: Noah Wire Services
