Doug Ford’s government defers $9B in taxes to cushion Ontario businesses amid U.S. trade turbulence
As economic storm clouds gather over North America, Ontario is stepping in with a bold financial umbrella for its business community. In response to fresh U.S.-imposed tariffs under President Donald Trump, the province has announced a temporary deferral of $9 billion in business taxes — a move aimed at protecting jobs, easing cash flow, and keeping local companies afloat.
From fuel and mining taxes to insurance and alcohol levies, ten major tax programs will be paused from April 1 to October 1, giving businesses a much-needed breathing space in a tightening economy.
What’s on Hold: The $9B Tax Freeze
Among the taxes being deferred are:
- Employer Health Tax
- Insurance Premium Tax
Gasoline and Fuel Taxes - Mining and Tobacco Taxes
- Beer, Wine & Spirits Tax
- International Fuel Tax Agreement
- Retail Sales Tax on Insurance & Benefit Plans
- Race Tracks Tax
The Ford government made it clear: this is not a waiver — it’s a deferral. Taxes will still be due after October 1, but no interest will be charged during the six-month grace period.
“Markets Are Speaking”: Ford Slams Trump Tariffs
Ontario Premier Doug Ford didn’t hold back when addressing the broader cause of the deferral — Trump’s aggressive trade policy.
“Let’s hope President Trump comes to some common sense here,” Ford said at a press conference in downtown Toronto.
“The markets are tumbling. Inflation is happening. Investment has stalled. If this continues, the U.S. is headed into a recession — and we’re getting caught in the fallout.”
Trump’s newly announced tariffs, including sweeping levies on the auto sector, have sent ripples through global markets, intensifying fears of a full-blown trade war. Canada, heavily tied to U.S. supply chains, has been especially vulnerable.
Safety Nets for Ontario Employers
Ontario isn’t stopping at tax deferrals. For the second time in two months, the Workplace Safety and Insurance Board (WSIB) will issue a $2 billion rebate to employers with strong safety records. A similar rebate was rolled out in March.
“We are ready to protect Ontario’s workers, businesses and families,” said Finance Minister Peter Bethlenfalvy.
“These are practical steps to help Ontario weather the storm while keeping our long-term economic plan on track.”
Bigger Vision: Breaking Trade Barriers & Building Resilience
This isn’t just about reacting to Trump’s latest move — the province says it’s laying the foundation for long-term economic strength. Ontario plans to eliminate internal trade barriers, aiming to become the most competitive economy in the G7.
“The government is ready to do whatever is necessary to protect Ontario,” read a statement accompanying the announcement.
As Trump’s tariffs widen — from steel and aluminum to autos and pharmaceuticals — Ontario is bracing for more volatility. But with these tax relief measures, the province is signalling that it won’t wait for Washington to make the first move.
