Canada's Finance Minister François-Philippe Champagne announced a new support package for Canadian businesses adversely affected by the US tariffs. The measures cover a wide range of areas from the automotive sector to public services.
Production Conditional Exemption in Automotive
Under the newly announced framework, automakers that continue to produce in Canada will be able to import CUSMA (North American Free Trade Agreement) compliant vehicles assembled in the US, exempt from Canada's counter tariffs. However, this exemption will only apply to companies that maintain production and investment plans. In the event of a decline in production or investments, the exemption will be gradually reduced.
6-Month Temporary Tax Exemption on Strategic Products
Canada will also provide a temporary tax exemption for 6 months for products imported from the US and used in the country in areas such as production, processing, food and beverage packaging, and health and public safety. This step aims to give businesses time to restructure their supply chains and, if possible, turn to domestic sources.
Financing Support for Large Enterprises
The Large Enterprise Tariff Loan Facility (LETL) program, announced in March, is now open for applications. The program will provide liquidity to large enterprises with restricted access to finance but operating in critical areas such as food, energy or national security, allowing them to continue their operations. Companies that have already entered bankruptcy proceedings will be excluded.
The government has indicated that additional support for businesses and employees may be on the agenda in the coming period. Additional measures are planned to be developed in coordination with state governments.
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