Invest in Hamilton

On April 15th, 2025, the Government of Canada announced a new suite of programs and measures aimed at providing support for businesses impacted by tariffs.

The first program is a performance-based, tariff remission framework for automakers. The program will allow automakers that continue to manufacture vehicles in Canada to import a number of U.S.-assembled, CUMSA compliant vehicles into Canada without being impacted by Canadian counter-tariffs.

On a related note, the Federal Trade Commissioner Service recently updated a resource page to help Canadian businesses better understand CUMSA compliance on their exports.

A second federal measure comes in the form of a 6-month tariff relief for goods imported from the United States that are used in key Canadian industries. The government’s press release identified goods in the following sectors as covered under this exemption: manufacturing, processing and food and beverage packaging, and goods used to support public health, health care, public safety, and national security objectives.

Finally, the Government of Canada announced that the Large Enterprise Tariff Loan Facility would begin taking applications to its stream of funding. The LETL will support eligible large businesses whose work contributes to food security, energy security, economic security, and national security. Qualifying businesses must also be facing challenges accessing market financing. The program’s focus is, critically, on businesses that were viable before trade uncertainty with the United States began, and require support to sustain operations during the current economic turmoil.

On April 16, 2025, The Government of Ontario introduced the Protect Ontario through Free Trade within Canada Act. The legislation is expected to create new opportunities for job creation and investment attraction by supporting free trade and labour mobility within Canada. Some components of this legislation include:

• Removing party-specific exemptions under the Canadian Free Trade Agreement.
• Expanding labour mobility with new “As of Right” rules, where Ontario will allow certified workers from other provinces and territories to begin working in Ontario immediately while they complete a streamlined registration process.
• Enabling mutual recognition with reciprocating provinces and territories, so that goods, services and registered workers that are good enough for other parts of Canada are recognized as good enough for sale, use or work in Ontario.

Additionally, on April 16th, 2025, the Government of Ontario launched the Ontario Together Trade Fund. This $50 million fund is expected to provide financial support to help businesses develop more inter-provincial customers, expand into new markets, and re-shore supply chains.

Eligibility for this program requires a business to operate within Ontario, have three years of financial statements, employ at least 5 individuals, and be able to demonstrate how their operation is impacted by U.S. tariffs. Applications are expected to open on April 23rd, 2025.

Canada’s next major trade milestone continues to be May 3rd, 2025; therein, the United States is expected to expand tariffs to automobile parts.

In addition to the above programs, a number of previously announced programs can be accessed by Hamilton businesses.

• Export Development Canada’s Trade Impact Program is mobilizing $5 billion over two years to help exporters reach new markets for Canadian products.
• Business Development Bank of Canada had made $500 million in favourably priced loans available to support impacted businesses in sectors directly targeted by tariffs and companies in their supply chains.
• $1 billion in new financing is available through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry.
• Temporary flexibilities have been added to the Employment Insurance Work Sharing Program, which helps avoid layoffs when there is a temporary decrease in business activity.
• The Canada Small Business Financing Program is offering a maximum loan of $1.15 million to small businesses and start-ups in Canada with revenue of less than $10 million.

And most relevant for Hamilton’s manufacturing sector, the Government of Canada has created a tariff remission request program to provide support on Canadian counter tariffs where a manufacturing company can not source inputs through domestic markets.

For companies seeking to diversify their trade relationships, consider meeting with a member of the Federal Trade Commissioner Service. The Trade Commissioner Service can help Canadian companies access Canada’s 15 free trade agreements with 51 countries worldwide. As is ever the case, please feel free to connect with Economic Development staff, who can offer a first point of introduction to the Trade Commissioner Service.