Canadian Government Provides Relief For Businesses Affected By U.S. Tariffs
As CTV News reported, the Canadian government has said automobile companies that continue to manufacture vehicles in Canada will get an exemption from the retaliatory tariffs the country had placed on imports from the United States. Specifically, Finance Minister François-Philippe Champagne said auto manufacturers will be allowed to import a certain number of U.S.-assembled vehicles that comply with the United States, Mexico, Canada Agreement on trade.
The number of tariff-free vehicles a company is permitted to import will decline if there are reductions in Canadian production or investment.
Minister Champagne also said the government intends to provide temporary six-month relief for goods imported from the United States that are used in Canadian manufacturing, processing, and food and beverage packaging, and to support public health, healthcare, public safety, and national security objectives. This decision will provide immediate relief to a broad cross-section of Canadian businesses that must rely on U.S. inputs to support their competitiveness, as well as to entities integral to Canadians’ health and safety, such as hospitals, long-term care facilities, and fire departments, Minister Champagne said.
The government explained this remission will provided on a time-limited basis “to provide businesses and entities with additional time to adjust their supply chains and prioritize domestic sources of supply if available.”
Finally, the government also is accepting applications for its new Large Enterprise Tariff Loan Facility (LETL) program, which will support eligible large businesses that contribute to Canada’s food, energy, economic, and national security and are facing difficulties accessing traditional sources of market financing. By offering additional liquidity, the government said this program will help employers that were viable before the recent U.S. trade actions sustain their operations and return to financial stability. As part of the program, companies will be required to make efforts to maintain jobs and sustain business activities in Canada. Firms that were already involved in insolvency proceedings before the United States imposed its trade penalties will not be eligible.
Read the full announcement at this link.