The disruptions and uncertainty caused by recent U.S. tariffs present significant challenges for Ontario’s economic prosperity. Tariffs are impacting the competitiveness and viability of key Ontario industries, such as automotive and steel manufacturing, and the livelihoods of workers who depend on stable cross-border trade with Canada’s most important trading partner.
The government moved fast to help protect Ontario from the impact of U.S. tariffs in April 2025 and, since then, has announced nearly $30 billion in relief and support for workers and businesses, including measures to build long-term resiliency and prosperity. Ontario is taking action to provide much-needed support for businesses, workers and communities during these turbulent times, while building a more competitive and diversified economy. This includes initiatives like the Protect Ontario Financing Program (POFP) and the Trade-Impacted Communities Program (TICP), along with tax deferrals for businesses and transitional support for laid-off workers, to help businesses keep workers on the job and build long-term resiliency and prosperity for Ontario.
Supporting Sectors Affected by U.S. Tariffs Through the Protect Ontario Financing Program
On August 13, 2025, the Ontario government launched the Protect Ontario Financing Program (POFP), the first phase of the $5 billion Protecting Ontario Account that was announced in the 2025 Ontario Budget. The POFP will provide support to Ontario-based businesses that have been directly impacted by higher tariff rates in the steel, aluminum, copper and auto sectors. Up to $1 billion in liquidity support will be provided to protect workers and operations by helping manage working capital challenges such as meeting payroll, lease payments and utility payments.
This immediate, flexible and agile response is supporting the steel, aluminum, copper and auto manufacturing industries that are directly impacted by Section 232 tariffs, helping sustain these sectors and build economic resilience during this turbulent time.
The government is now developing the second and third streams, to be supported by the remaining $4 billion. By leveraging private capital, these streams will focus on helping businesses transition away from overreliance on U.S. trade relationships, increase productivity and invest in domestic supply chains and in high-growth industries like artificial intelligence, defence, advanced manufacturing, life sciences, and research and development in the critical minerals sector. Together, these streams will fortify Ontario’s economic resilience, fuel innovation, and fast-track high-growth firms to sharpen Ontario’s global edge.
Helping Communities and Industries Navigate Trade Disruptions
As tariffs and U.S. trade disruptions affect different sectors across Ontario, the government is ensuring communities and local industries can get support to navigate these economic challenges through the Trade-Impacted Communities Program (TICP). This program provides up to $40 million in funding that is flexible and tailored to meet the needs of individual communities and local industries.
The TICP helps respond to trade disruptions by supporting community projects that improve local resilience, help develop and implement local response strategies, and expand export opportunities. It also supports large-scale, collaborative projects designed to grow and transform local clusters and industrial supply chains. Eligible applicants include municipal governments, economic development organizations, business accelerators and incubators, as well as sector or industry associations. Applications for funding under the program are currently being reviewed.
Supporting At-Risk Workers
As part of the government’s plan to protect Ontario workers, the government is continuing to invest in the Protect Ontario Workers Employment Response (POWER) Centres, which builds on and enhances existing government-supported action centres. As announced in the 2025 Ontario Budget, the government is investing $20 million in the POWER Centres, which will provide access to training and upskilling to workers affected by, or at risk of, layoffs. By building and expanding on partnerships with unions, community organizations, colleges and universities, the centres will connect workers to more training opportunities and Employment Ontario programs. For the first time, the province will be able to launch a centre proactively before a layoff has occurred, with the added ability to respond within 24 hours. This year, 10 of these centres were operational across Ontario, helping almost 15,000 workers with services and supports.
Helping Businesses Through the Deferral of Select Provincially Administered Taxes
To provide immediate support to businesses during this time of economic uncertainty, Ontario provided a six-month interest- and penalty-free period for businesses that chose to defer payments under select provincially administered taxes between April 1 and October 1, 2025. This initiative made available up to $9 billion in liquidity relief to about 80,000 businesses, providing businesses with near-term flexibility and enabling them to sustain operations and preserve employment during a period of economic uncertainty. This relief was made available for 10 business-related tax programs — including the Employer Health Tax; Fuel Tax; Gasoline Tax; Mining Tax; and Beer, Wine and Spirits Tax.
Continuing to Support Businesses Through Workplace Safety and Insurance Board Rebates and Premium Reductions
The Workplace Safety and Insurance Board (WSIB) has implemented key initiatives to support businesses during this period of economic uncertainty. These include premium rate reductions and the distribution of surplus rebates, both designed to strengthen business stability and safeguard employment across the province.
As announced in September 2025, WSIB premium rates were further reduced to the lowest level in 50 years, which will result in additional annual savings of approximately $60 million for Ontario employers in 2026. In total, average premium rate reductions and several surplus distributions have resulted in cumulative savings for businesses of approximately $21.5 billion over the last decade. These savings offer employers an opportunity to reinvest in their workers, fuel business expansion, and accelerate growth, priorities that are more important than ever right now.