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.