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OTTAWA — The federal government is extending its relief program for firms importing tariffed U.S. goods and is changing the mix of goods eligible for those remissions — including for non-steel goods used in mining, quarrying and oil and gas extraction.
Since the early days of Canada’s retaliatory duties against the United States, Ottawa has offered what it calls a temporary remission program to reduce the burden on Canadian firms caught in the tariff crossfire.
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The government has routinely extended that program and modified what’s eligible for remissions as it looks to give itself more time to help firms transition away from U.S. suppliers, particularly for steel.
The program’s expiration date will be extended by another year to June 30, 2028.
Goods used by public education entities, including those mandated by Indigenous organizations, will be also be eligible for relief.
Certain goods integral to national security, public health and packaging in the agricultural and food and beverage sectors are also exempt.
Canada has maintained retaliatory tariffs on U.S. steel and aluminum imports for most of the trade dispute, but the federal government ramped up its response in September as a new wave of U.S. duties took effect.
The government now imposes counter-tariffs on a range of U.S. goods varying from 15 to 50 per cent.
Ottawa says it’s also planning to exclude goods from the remissions program that can reliably be sourced in Canada.
Certain trailers will be removed from the remissions program on Dec. 1, while aluminum wire and extrusions and paperboard products will be taken out on Feb. 1, 2027.
The federal government’s remissions program has been criticized in the past by the Canadian Steel Producers Association. The group said the relief program removes the pressure on firms to pivot to Canadian suppliers.
Canada-U.S. Trade Minister Dominic LeBlanc argued in a media statement Monday that extending and adjusting these measures strikes the right balance.
“Extending these tariff relief measures gives Canadian companies the support they need today while encouraging greater use of Canadian-made goods and services,” LeBlanc said.
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