Tariff Support | City of Kawartha Lakes

Background: How We Got Here

On February 1, 2025, President Trump had initially imposed a 25% tariff on all imports from Canada, significantly impacting Canada’s economy by raising costs and disrupting deeply integrated supply chains essential to businesses in both countries. That same day, Prime Minister Trudeau announced a reciprocal 25% tariff on $155 billion worth of U.S. goods entering Canada. Both governments agreed to pause the tariffs for 30 days to allow for negotiations, but no resolution was reached.

Further escalating tensions, on February 11, 2025, the U.S. government announced a 25% tariff on all steel and aluminum imports, set to take effect on March 4. Canada supplies nearly 25% of the steel imported by the U.S. and close to 60% of its aluminum, making this a major concern for manufacturers and businesses in Kawartha Lakes that depend on cross-border trade.

Last updated: May 13, 2025

Latest News

May 13, 2025

The Ontario Together Trade Fund offers up to $5 million in funding to help Ontario businesses expand into new markets, reshore supply chains, and offset U.S. trade disruptions. Focused on small and medium enterprises, the fund supports investments that boost competitiveness, create jobs, and strengthen local manufacturing.

Applications opened April 23, 2025, with a continuous intake, apply anytime while the program remains open.

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April 2, 2025

25% tariffs on Canadian-made passenger vehicles, levied on the value of all non-U.S. content.

U.S.-Mexico-Canada Agreement (USMCA) compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff.

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Canada introduced a 25% retaliatory tariff on vehicles imported from the U.S. that do not comply with Canadian-United States-Mexico Agreement (CUSMA).

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March 13, 2025

Canada imposed retaliatory tariffs on $29.8-billion worth of goods (25%).

March 12, 2025

The 25% tariffs on Canadian steel and aluminum are now in effect, with Canada implementing an equal 25% retaliatory tariff.

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March 10, 2025

Ontario introduced a 25% surcharge on electricity exports to the U.S. as a countermeasure to the tariffs on Canadian goods, with the goal of supporting local industries and responding to U.S. trade actions.

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March 7, 2025

Fighting for Canadian workers and businesses, News Release, Government of Canada

Export Development Canada (EDC), through the Trade Impact Program , deploys $5 billion to help Canadian exporters.

On March 6, 2025, the U.S. Administration announced a temporary suspension of tariffs on Canadian goods that comply with the Canadian-United States-Mexico Agreement (CUSMA) until April 2.

Additionally, the tariff on potash, a key ingredient in fertilizer, has been reduced to 10% from 25%.
A one-month exemption was also granted to automakers complying with USMCA.

These changes follow the March 4, 2025, decision to impose a 25% tariff on Canadian exports, a 10% tariff on energy products, and a 25% tariff on steel and aluminum, set to take effect on March 12. In response, Canada has implemented immediate 25% counter-tariffs on $30 billion worth of U.S. goods, with an additional $125 billion in tariffs coming March 25.

Economic Development is committed to help businesses navigate tariffs, explore trade agreements, and expand globally. Share your concerns to connect with the right resources, supports, and partners.

For current and up-to-date information on Canada’s response to U.S. tariffs, visit the Government of Canada’s official resource: Canada’s Response to U.S. Tariffs.

Expanding into Domestic and Global Markets

Expanding into global markets

Export Development Canada (EDC) helps Canadian businesses grow internationally with financing, insurance, and trade expertise. Their tools and insights reduce risk and open doors to new markets. Learn more at EDC’s website.

Expanding to new markets

For businesses seeking new markets, the Canadian Trade Commissioner Service provides support in over 160 locations worldwide. With 15 ratified Free Trade Agreements (FTAs) covering 49 countries, Canadian businesses can access 1.5 billion consumers.

Finding Canadian suppliers

Explore Canadian supply chain options through Canada’s business directories.

Funding to grow your exports

CanExport SMEs program helps businesses expand into new international markets with funding for market research, marketing, and business development.

Applications open: March 13 - May 31, 2025.

Ontario Together Trade Fund

The Ontario Together Trade Fund (OTTF) provides financial support to help businesses near-term investments so they can serve more interprovincial customers, develop new markets and re-shore critical supply chains in the face of U.S. tariffs.

Support for business growth

The Ministry of Economic Development Job Creation and Trade (MEDJCT) offers programs and resources to help businesses scale locally and globally. Access funding, expert advice, and market expansion opportunities to Grow Your Business.

Resources and support for trade challenges

Business Development Canada

Business Development Canada (BDC) Pivot to Grow Loan offers $500 million in new lending, providing financing, advice, and loan deferrals to small and medium-sized businesses (SMEs) financially impacted by tariffs.

Business benefits finder

Discover the Innovation, Science and Economic Development (ISED) Business Funding portal—a concierge service from the Government of Canada that helps businesses find available programs, services, and funding.

EI Work-sharing Program

The EI Work-Sharing Program offers benefits to employees who work reduced hours due to a decline in business activity beyond their employer’s control. Temporary flexibilities are now available.

Farm Credit Canada

Farm Credit Canada's (FCC) Trade Disruption Customer Support Program is offering $1 billion in new lending, with access to credit lines of up to $500,000 and the option to defer principal payments for up to 12 months on current loans.

Products subject to tariffs

A full list of U.S. products subject to Canada's 25% retaliatory tariffs is available on Canada.ca.

Startup Canada Tariff Toolkit

The Startup Canada Tariff Toolkit is designed to help entrepreneurs and support organizations navigate tariffs, this guide covers regulations, supply chain impacts, risk strategies, and expansion. Updated in real time.

Tracking U.S.-Canada trade

Stay informed on the economic relationship between Canada and the U.S. with the Canadian Chamber of Commerce trade tracker.

Supporting local, Ontario and Canadian products

Supporting local businesses

Kawartha Lakes' towns and villages feature a diverse network of businesses, artisans, and suppliers. Connect with local businesses and vendors.

Supporting Ontario-made products

Showcase and source Ontario-made products to help strengthen local businesses affected by U.S. tariffs. Apply for the Ontario Made Product Series for free.