Canada promises relief for businesses hit by US tariffs

TRENTON, Canada

The trade war between Canada and the US took another twist Tuesday with Ottawa announcing new measures to help businesses financially wounded by the American tariffs.

Federal Finance Minister Francois-Philippe said the government will enact a six-month tariff relief program for imports of US goods used in manufacturing, processing and food and beverage packaging.

The tariff break will also be extended to health-care goods that support public health, public safety and those that are striving to make national security goals.

“These measures include the remission of some of the countermeasure tariffs announced by Canada in response to unjustified tariffs imposed by the U.S. on Canadian products,” according to a statement from the Minister of Finance department.

The temporary relief will also apply to automakers. If a vehicle manufacturer continues manufacturing in Canada, they can import an as-yet unspecified number of vehicles assembled in the US into Canada. Those vehicles will not be subject to counter-tariffs that Canada has imposed on other US car imports. The imported vehicles must be manufactured according to the terms laid out in the Canada, US, Mexico free-trade agreement.

There is relief for businesses hit financially by US tariffs, as well. Those facing difficulty in obtaining financial help and were viable before the tariffs started will be eligible for funds as long as they “make efforts to maintain jobs and sustain business activities in Canada,” the release said.

“From day one, the government has reacted with strength and determination to the unjust tariffs imposed by the United States on Canadian goods,” said Champagne. “We continue to stand by Canada’s workers and businesses.”