Province providing $962 million worth of support for businesses, workers impacted by tariffs

Tax measures will provide businesses with about $840 million in liquidity, says government

BY Jim Wilson 02 May 2025

The Manitoba government is offering nearly $1 billion in support measures for businesses and workers in response to tariffs imposed by the United States and China, according to the provincial government.

Specifically, about $962 million in relief and support is available—and will continue to be made available—under the province’s Budget 2025 for those impacted by the tariffs.

"Our government is stepping up to help give businesses liquidity and keep workers employed during the uncertain economic wave we’re all riding now," said Finance Minister Adrien Sala. "Budget 2025 delivers the biggest investment in capital projects like schools and hospitals in Manitoba’s history to put people to work and protect our economy. We’ll continue to invest in economic development, leaning into our role as a central trade corridor and reducing barriers to trade in Canada."

Nearly half (46%) of Canadian businesses report a slight negative impact from U.S. tariffs, while 24% say they have experienced a strong negative effect, according to a previous report from the Canadian Federation of Independent Business (CFIB).

Deferred payments in Manitoba

Beginning in February, all Manitoba businesses became eligible to defer payments of the retail sales tax and the health and post-secondary education tax levy, the government announced.

"Interest and penalties will be waived for amounts unpaid by businesses that have chosen to defer their February, March, and April tax returns," the province stated.

"These tax measures will provide businesses with approximately $840 million in liquidity over the three-month period. The minister noted that the deferral applies to all businesses reporting provincially administered taxes."

In addition, the Workers Compensation Board (WCB) of Manitoba is issuing $122 million in rebates to employers, aimed at supporting business continuity and preserving jobs, noted Sala.

Manitoba businesses or workers that have questions or would like to provide feedback can contact the tariff hotline at 1-877-827-4330 (toll-free), 204-945-8011 or the province’s general line at 204-945-3744 or visit https://manitoba.ca/tariffresponse/.

Amid the U.S. tariffs, more than four in 10 (42%) of Canadians who are currently employed fear losing their job within the next 12 months, according to a previous report from Leger.

Governments support for employers, workers amid tariffs

In response to escalating tariffs imposed by the United States and China, the Canadian federal government has introduced a series of measures to support affected businesses and employers, including:

Financial support and tax relief: A $6-billion aid package has been announced to provide liquidity to businesses, including deferrals on corporate income tax and GST/HST remittances. Canada.ca+1Canadian HR Reporter+1
Employment insurance enhancements: Adjustments to the Employment Insurance (EI) program, such as temporary special measures to the EI Work-Sharing Program, aim to help employers retain employees during periods of reduced business activity.
Strategic response fund: A $2-billion fund has been established to bolster the competitiveness of the automotive sector and protect manufacturing jobs.
Trade diversification efforts: Investments in trade-enabling infrastructure are being made to reduce reliance on the U.S. market and open new opportunities for Canadian exporters.

Provinces and territories have also taken steps to support local businesses and workers:

Ontario's relief package.: Ontario has committed $11 billion to support employers and workers, including deferrals of select provincially administered taxes and rebates through the Workplace Safety and Insurance Board (WSIB).
Labour Market Development Agreements (LMDAs): Provincial and territorial ministers have emphasized the importance of LMDAs, funded through EI contributions, to provide employment assistance and reskilling services tailored to regional needs.

Canadian businesses are increasingly pessimistic as the ongoing trade war initiated by U.S. President Donald Trump continues to impact the economy, according to a previous report from the Bank of Canada.