The Ontario Government has launched a tax deferral programme offering businesses a six-month reprieve on certain provincially administered taxes to mitigate the impact of US trade policy on the provincial economy.
The move, retroactive from 1 April 2025 to 1 October 2025, aims to provide approximately C$9bn in cash flow to support employment and help businesses navigate economic challenges.
Ontario is providing relief to businesses that are remitting taxes under the province’s ten business-oriented tax programmes, including mining tax.
Premier Doug Ford said: “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.”
In addition to the tax deferral, a C$2bn rebate will be issued through the Workplace Safety Insurance Board (WSIB) to further aid businesses in keeping workers employed.
WSIB president and CEO Jeffery Lang said: “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.”
The announcement follows President Donald Trump’s imposition of “retaliatory tariffs” on several countries, including a baseline tax on imports from countries with trade surpluses with the US.
Although Canada was exempt from these tariffs, it still faces a 25% tax on specific goods that are non-compliant with the Canada-United States-Mexico Agreement (CUSMA), steel, aluminium and auto imports.
In retaliation, Canada has set a 25% counter tariff on North American free trade pact non-compliant US cars and maintained the existing 25% tariffs on $60bn worth of other goods.
Premier Ford has expressed concern over the potential loss of up to 500,000 jobs in Ontario due to the trade tensions, urging President Trump to reconsider his approach.
The C$11bn relief measures come as a “first step” in a broader strategy to bolster the provincial economy.
