Williams HR Law LLP

Tariff Delay Offers Breathing Room: How Employers Can Prepare When Tariffs Hang in the Balance

February 5, 2025

In light of the US announcing tariffs on Canadian imports, the federal government indicated it was planning to introduce an economic relief package designed to assist workers and businesses should the US move forward with tariffs. We recently blogged on what the federal government’s potential response to the tariffs could look like based on programs implemented to support workers and businesses in response to the COVID-19 pandemic. 

In a twist of events, the imposition of the US tariffs has now been postponed for at least 30 days, offering a temporary reprieve for Canadian businesses. However, there is still uncertainty surrounding future trade relations, whether US tariffs will be imposed, and if so, when they will take effect. Additionally, the federal government has released only general comments regarding a potential relief package and the exact details remain unknown. A key concern for many employers is the risk of widespread layoffs and production delays should the US introduce tariffs after the 30 days reprieve expires.

Businesses are encouraged to stay informed and proactively prepare for any eventuality in order to navigate the challenges ahead. Employers should:

Review Workplace Policies: Existing workplace policies should be reviewed to ensure they are adaptable to potential disruptions caused by tariffs, allowing employers to quickly adjust operations.

Update Employment Agreements: It is crucial that employers review and if necessary, update employment agreements to ensure they include clauses for temporary layoffs, altered working hours, or termination, which will provide businesses with the flexibility to handle economic shifts and avoid legal challenges.

This blog is provided as an information service and summary of workplace legal issues.

This information is not intended as legal advice.

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