The Ontario government has announced an $11 billion relief plan to support businesses and workers affected by recent U.S. trade actions, including major new tariffs imposed by the Trump administration. The package includes tax deferrals, WSIB rebates, and broader economic support to help offset job losses and rising uncertainty in trade-reliant sectors.

The Trump administration’s imposition of further tariffs in March have rattled both businesses and investors, resulting in the largest decline in Canadian jobs since January 2022. According to Statistics Canada, the country shed 33,000 jobs last month across several sectors, driven largely by growing uncertainty surrounding U.S. trade policy. The downturn has pushed the national unemployment rate to 6.7 percent.

Layoffs have already begun in key sectors, particularly in auto production. This follows the U.S. government’s imposition of 25 per cent tariffs on imported goods not included in the Canada-U.S.-Mexico-Agreement and an additional 25 per cent tariff on steel and aluminum imports into the U.S. from Canada. These measures, now in effect, have deepened industry concerns and heightened fears of a global economic slowdown.

Following these developments, the Ontario government has unveiled some key measures that are a part of its $11 billion relief plan to support businesses and workers. Details of these measures are set out below.

Tax Deferral Program

Businesses can delay payments on ten types of provincial taxes for up to six months. The tax programs eligible for the deferral are as follows:

• Employer Health Tax;
• Insurance Premium Tax;
• Gasoline Tax;
• Fuel Tax;
• Mining Tax;
• Tobacco Tax;
• International Fuel Tax Agreement;
• Beer, Wine & Spirits Tax;
• Retail Sales Tax on Insurance Contracts and Benefit Plans; and
• Race Tracks Tax.

Businesses can temporarily defer these taxes from April 1, 2025, to October 1, 2025, without incurring penalties or interest. All outstanding taxes must be paid by October 1, 2025.

Workplace Safety and Insurance Board Rebate

In November 2024, the Workplace Safety and Insurance Board (WSIB) announced a surplus rebate that returned $2 billion to Ontario businesses. Eligible “safe” employers received their share of this rebate in March 2025.

Now, the WSIB is issuing an additional $2 billion rebate to recognize and reward safe employers once again. The government has not announced the specific amounts individual employers will receive from the rebate.

Broader Economic Strategy

Ontario is doubling down on its promised efforts to reduce internal trade barriers, fast-track development approvals, diversify trade partners, and assist businesses in retooling and retraining their workforce, if needed.

The latest U.S. tariffs have delivered a significant blow to the Canadian economy, triggering job losses and fueling broader concerns about trade stability. As industries grapple with mounting uncertainty—particularly in sectors reliant on cross-border trade—Ontario’s aid package aims to soften the impact for businesses. We will continue to monitor developments related to tariffs and provide updates that are relevant to employers as new details come to light.

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

This information is not intended as legal advice.