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2w ago

Canada Implements Targeted Relief Measures in Response to U.S. Tariffs

New initiatives include tariff remissions for automakers, temporary exemptions for key imports, and financial support for large enterprises to bolster economic resilience.

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Employees work on the line at automaker General Motors (GM) Brightdrop unit's CAMI EV Assembly, Canada's first full-scale electric vehicle manufacturing plant, in Ingersoll, Ontario, Canada December 5, 2022. REUTERS/Carlos Osorio/File Photo
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Overview

  • The Canadian government announced a performance-based remission framework allowing automakers to import U.S.-assembled vehicles tariff-free if they maintain local production and investment in Canada.
  • A six-month exemption on tariffs for U.S. imports used in manufacturing, food packaging, and public health sectors was introduced to support competitiveness and supply chain adjustments.
  • The Large Enterprise Tariff Loan Facility (LETL) is now open to provide financial assistance to major businesses facing liquidity challenges due to the trade dispute.
  • These measures follow escalating trade tensions, including U.S. tariffs on Canadian steel, aluminum, and automobiles, and Canada’s retaliatory tariffs on U.S. goods.
  • The initiatives aim to protect Canadian jobs, reduce reliance on U.S. suppliers, and strengthen domestic economic resilience in light of the ongoing trade conflict.