CFPA has been working hard to ensure our members are aware of issues and government supports in the ongoing tariff war, and to provide a voice to the industry with government. We have already submitted a request to the Ministry of Finance to ensure fluid power components are excluded from any Canadian retaliatory tariffs, and continue work with our partners, Canadian Manufacturers & Exporters and the Canadian Federation of Independent Businesses to amplify this voice further. Here is some information on the current situation:
On March 7, the government announced federal measures to support businesses and workers. Measures include:
- Launching the Trade Impact Program through Export Development Canada. The program will deploy $5 billion over two years, starting this year, to help exporters reach new markets for Canadian products and help companies navigate the economic challenges imposed by the tariffs, including losses from non-payment, currency fluctuations, lack of access to cash flows, and barriers to expansion.
- Making $500 million in favorably priced loans available through the Business Development Bank of Canada to support impacted businesses in sectors directly targeted by tariffs, as well as companies in their supply chains. Businesses will also benefit from advisory services in areas such as financial management and market diversification.
- Providing $1 billion in new financing through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry. This lending offer will help address cash flow challenges so that businesses can adjust to a new operating environment and continue to supply the high-quality agricultural and food products that Canadians rely on.
- Introducing temporary flexibilities to the EI Work-Sharing Program to increase access and maximum agreement duration. The Work-Sharing Program provides EI benefits to employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their employer’s control to help retain employees and avoid layoffs.
- The federal government has created:
- A fact sheet and a key messages document on Canada’s shared border and trade.
- A resources and support document for businesses.
Remission Process: The tariff remission process allows businesses to request relief from tariff payments under specific circumstances. CFPA is excited to host a member webinar with remissions specialist Ann Penner of Wellington Advocacy.
Here are the key steps involved:
- Eligibility: Businesses can submit remission requests for current tariffs and potential future tariffs on specific goods, particularly those affected by U.S. tariffs.
- Submission: Requests can be submitted via email to remissions-remises@fin.gc.ca.
- Framework: The Government of Canada has outlined a framework for considering remission requests, particularly for products from the U.S. that will be affected starting March 4, 2025.
- Surtaxes: The remission process also applies to surtaxes on electric vehicles and steel and aluminum imported from China, among other goods.
For more detailed information, you can refer to the official Government of Canada website or consult trade compliance experts.