Wedoany.com Report-Apr. 12, The Ontario Government has introduced a C$11 billion ($7.7 billion) tax deferral program to ease financial pressures on businesses amid U.S. trade policy changes. Effective retroactively from April 1, 2025, to October 1, 2025, this initiative offers a six-month pause on certain provincially managed taxes. It aims to free up around C$9 billion in cash flow, helping companies maintain jobs and address economic uncertainties.

A $2bn (C$2.83bn) rebate will be issued through the WSIB to further aid businesses in keeping workers employed.

The relief applies to businesses under Ontario’s ten business-focused tax programs, including the mining tax. Premier Doug Ford explained the intent: “We can’t control President Trump, but we are 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.” This move seeks to strengthen Ontario’s economic resilience.

Additionally, the government will provide a C$2 billion rebate through the Workplace Safety Insurance Board (WSIB) to support businesses in retaining employees. WSIB President and CEO Jeffery Lang stated: “In these uncertain times, Ontario businesses need certain relief. By achieving better results and strong financial management we are able to return this surplus right when businesses need it the most.” This rebate complements the tax deferral, offering further assistance during a challenging period.

The measures respond to U.S. President Donald Trump’s recent “retaliatory tariffs” on nations with trade surpluses, though Canada was spared from the baseline import tax. However, Canada faces a 25% tariff on specific goods not aligned with the Canada-United States-Mexico Agreement (CUSMA), as well as steel, aluminum, and auto imports. In response, Canada imposed a 25% tariff on U.S. cars not compliant with the North American free trade pact and upheld existing 25% tariffs on $60 billion worth of other U.S. goods.

Premier Ford voiced concerns about the potential loss of up to 500,000 jobs in Ontario due to these trade disputes, calling on President Trump to reassess his stance. The C$11 billion package is described as an initial effort within a larger plan to safeguard the province’s economy. By easing tax burdens and providing rebates, Ontario aims to support businesses, preserve employment, and enhance economic stability in the face of external trade pressures.