The Canadian government on April 15 announced a suite of new measures designed to support Canadian businesses and entities grappling with the ongoing tariff dispute with the United States. Finance Minister François-Philippe Champagne unveiled a performance-based remission framework for automakers, temporary tariff relief for key imported inputs, and the launch of the Large Enterprise Tariff Loan Facility (LETL). These initiatives aim to incentivize domestic production, provide immediate cost relief, and ensure access to crucial financing for affected Canadian enterprises.

The first key measure is a performance-based remission framework for the automotive sector. This framework will allow automakers maintaining production in Canada to import a specific quantity of U.S.-assembled vehicles compliant with the Canada-United States-Mexico Agreement (CUSMA) without incurring Canada's retaliatory tariffs. This incentive is directly tied to continued manufacturing and planned investments within Canada. The number of tariff-free imports permitted will decrease if companies reduce their Canadian production or investment levels.

Secondly, the government intends to provide temporary, six-month tariff relief on goods imported from the U.S. that are essential for Canadian manufacturing, processing, and food and beverage packaging. This measure also extends to goods used to support critical public services, including public health, healthcare, public safety, and national security objectives. This temporary reprieve will provide immediate financial relief to a wide range of Canadian businesses reliant on U.S. This will support essential entities like hospitals, long-term care facilities, and fire departments by reducing the cost of necessary supplies.

The third significant announcement was the official launch of the Large Enterprise Tariff Loan Facility (LETL), initially announced by the Prime Minister in March. This program is now accepting applications from eligible large businesses facing challenges in securing traditional market financing due to the U.S. trade actions. The LETL will provide access to crucial liquidity for companies that contribute significantly to Canada's food, energy, economic, and national security. A key condition of the loan facility is that recipient companies must demonstrate efforts to maintain jobs and sustain business activities within Canada. Businesses already involved in insolvency proceedings prior to the trade dispute will not be eligible for this support.

Minister Champagne emphasized the government's unwavering commitment to supporting Canadian workers and businesses in the face of what he termed "unjust tariffs" imposed by the United States. He stated, "From day one, the government has reacted with strength and determination to the unjust tariffs imposed by the United States on Canadian goods. We continue to stand by Canada’s workers and businesses. Today, we’re giving Canadian companies and entities more time to adjust their supply chains and become less dependent on U.S. suppliers. This will help make our economy stronger and more resilient."