Hello, bonjour,
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Given the continued threats of American unjustified tariffs against Canada, Minister Valdez wanted to update you on what our government is doing to stand up for Canada and support Canadian businesses. We also included a few other key updates that we think you and your networks would be interested in.
We always welcome you to reach out directly to us with any feedback, questions, or suggestions.
Canada’s Response to Unjustified American Tariffs:
As you know, the Canada-US tariff situation is rapidly evolving. President Donald Trump has been threatening 25% tariffs on Canadian goods – a measure that is completely unjustified and would harm both Canadians and Americans.
Canada will not stand by as we are unfairly targeted. After Prime Minister Trudeau proposed 25% counter tariffs against $155 billion worth of American goods, and reiterating the $1.3 billion border plan we announced last December, President Trump agreed to pause his tariffs for 30 days.
While we continue to work with the United States through this issue, Team Canada stands ready with a strong national response, and Canadians are united in the face of this economic threat. Team Canada is working together at every level – including with premiers, mayors, as well as industry, labour and union leaders.
Our message to Canadians remains the same: there’s no better time than now to choose Canada, shop Canadian products, and support Canadian small businesses.
Bank of Canada Cuts Interest Rates
The Bank of Canada announced last week that it would cut interest rates – to 3%. This is the sixth consecutive time the Bank has lowered interest rates and a sign that our economic plan is working.
The Minister of Finance announced last week that the changes in the capital gains inclusion rate would be deferred from June 25, 2024 to January 1, 2026.
Moreover, to support small business owners, the increase of the Lifetime Capital Gains Exemption to $1.25 million will continue to remain in effect. The new Canadian Entrepreneurs’ Incentive that reduces the inclusion rate to one-third will also continue. Combined with the new $1.25 million lifetime capital gains exemption, when this incentive is fully rolled out, entrepreneurs would pay less tax and be better off on capital gains of up to $6.25 million.
Chris Zhou
Director of Communications | Directeur des communications
Office of the Minister of Small Business
Cabinet de la Ministre de la petite entreprise