Tax Relief: Support for Those Impacted by Tariffs

Posted on June 11th, 2025 in Cross-border Tax, Domestic Tax

United States of America USA Global Tariff on Canada Exports of Goods, Tax, Trade War, Economy, Politics, Government

In response to the tariffs, the federal government has announced several measures to support businesses and individuals.

In accordance with a March 21, 2025, Release from the Prime Minister, CRA will implement the following measures:

deferring GST/HST remittances and corporate income tax payments from April 2 to June 30, 2025;
waiving interest on GST/HST and T2 instalment and arrears payments required to be paid between April 2 and June 30, 2025; and
providing interest relief on existing GST/HST and T2 balances between April 2 and June 30, 2025.

Interest will resume starting July 1, 2025. CRA also reminded that taxpayers must continue to file GST/HST returns and T2 returns by their due dates to remain compliant with filing requirements.

On March 7, 2025, the Department of Finance issued a News Release announcing the following measures:

launching the Trade Impact Program through Export Development Canada that will deploy $5 billion over two years to help exporters reach new markets for Canadian products and help companies navigate the economic challenges imposed by the tariffs;
making $500 million in favourably 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;
providing $1 billion in new financing through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry; and
temporarily increasing access to and lengthening the maximum duration of agreements in the EI work-sharing program. This 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, allowing employers to retain experienced workers and avoid layoffs, and helping workers maintain their employment and skills.

Review and leverage available tax deferrals and government financing programs as appropriate to ease the impact of tariffs.

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Article originally published in: Tax Tips & Traps 2025 Second Quarter – Issue 150.