Ontario pledges billions in relief to safe employers as trade war simmers
By Abdul Matin Sarfraz, Local Journalism Initiative Reporter, Canada’s National Observer
Ontario rolled out an $11-billion support package Monday to help businesses and workers under pressure from U.S. tariffs — but industry experts and new polling suggest the relief may not be enough for a crisis expected to drag on well beyond the six-month window the Ford government has proposed.
The relief plan, which Premier Doug Ford framed as a step to “build the most competitive economy in the G7,” includes two major pillars: a six-month deferral on select provincial taxes — which the province says will provide $9 billion in cash-flow support to about 80,000 businesses — and a $2-billion rebate through the Workplace Safety and Insurance Board (WSIB) “for safe employers to support businesses and help keep workers on the job.”
“In the face of President Trump’s attacks on Ontario’s economy, our government will do whatever it takes to protect Ontario workers and businesses,” said Ford in a statement. “We can’t control President Trump, but we’re in full control of the kind of future we build for ourselves.”
The tax deferral, effective from April to October this year, allows businesses to delay payments without penalties or interest on 10 provincially administered taxes — including those for employer health, gasoline, fuel, mining, tobacco, and the international fuel tax agreement. Ford said the measure will give about 80,000 businesses critical breathing room and greater flexibility to manage challenges stemming from US tariffs.
The $2-billion WSIB rebate follows a similar $2-billion rebate issued in March, the government says. It is targeted at safe employers (businesses with strong health and safety records and low workplace injury claims) to help them maintain staffing levels and preserve jobs during the economic downturn.
Trump’s latest tariffs — including a 25 per cent duty on vehicles made outside the U.S. — put that industry at immediate risk.
In response, Canada also announced a 25 per cent retaliatory tariff on U.S.-made vehicles last week — a move Prime Minister Mark Carney said would generate $8 billion the government would use to support affected workers and businesses.
Ontario’s economy is vulnerable to U.S. tariffs, given that 85 per cent of its exports go to the US, and the province’s auto sector is a key contributor, accounting for $36 billion of the $220.5 billion total. Last year alone, Ontario produced 1.54 million vehicles, most of them destined for American consumers.
Ford has previously warned that up to 500,000 Ontario jobs could be lost if American tariffs are applied to Ontario’s export market.
Ali Nasser Virji, policy director at the Ontario Chamber of Commerce (OCC), cautiously welcomed the relief measures, saying they signal that the province is taking the tariff threat seriously — but he also warned additional support may be necessary.
“These supports are a strong and necessary start, but in some cases, more may be needed to keep businesses afloat through this period,” Virji said. “As economic headwinds across the globe continue to shift in the coming weeks, support may be needed to ensure that our most trade-exposed sectors, including automotive manufacturing, forestry, food and beverage and mining, remain competitive.”
On the six-month window for relief, Virji told Canada’s National Observer, regardless of how U.S. trade policies evolve in the coming months, one truth remains certain: “We must reduce our reliance on the U.S., taking steps to secure our supply chains, fortify our critical industries, and expand our export reach to new markets.”
New Angus Reid Institute polling suggests 39 per cent of Canadians expect the Canada-U.S. tariff conflict to last until the end of Trump’s presidency, and another 12 per cent believe it will continue for over a year.
That raises doubts about whether a six-month relief window will be sufficient. The same survey found 82 per cent of respondents said they’re concerned about the negative consequences of Trump’s trade actions and more than half of working Canadians reported feeling worried about job security.
Meanwhile, Unifor and CUPE — collectively representing more than one million workers across Canada — issued a joint statement Monday, declaring they “stand united against attacks on Canadian workers initiated by the United States administration’s escalating trade and investment war,” and urging the federal government to take stronger action. The unions called for increased investment in public services, domestic procurement, transportation infrastructure and support for Canadian media and telecommunications.
“We are united in our calls to protect and create Canadian jobs as we build a strong, sustainable, and resilient economy built by and for workers,” the statement reads. “We call on all levels of government to stand up for Canadian workers in these extremely challenging economic times.”
The Ford government says it is also working to diversify Ontario’s trading partners and speed up development approvals to reduce the province’s economic reliance on the U.S.
Mike Schreiner, leader of the Ontario Greens, says his party supports the Ford government’s relief package, but is urging the province to also take focused action on affordability.
“We are fully committed to working across party lines and collaborating with the government and opposition parties at this time of crisis,” Schreiner said. “In particular, workers need to be supported, and we are glad to see that this spending includes a rebate for employers to keep workers in jobs.”
Print this page