Tax deferrals on table if Canada hit with U.S. tariffs: Kinew Country’s response ‘has to be noticed,’ premier says after first ministers meeting By: Maggie Macintosh Posted: 6:39 PM CST Wednesday, Jan. 29, 2025 Last Modified: 8:29 AM CST Thursday, Jan. 30, 2025 Updates

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The Manitoba government may defer tax collection to support local companies if U.S. President Donald Trump follows through on his threat to impose 25 per cent tariffs on Canadian products.

Following Wednesday’s meeting of first ministers, NDP Premier Wab Kinew told reporters he continues to be focused on preventing penalties on made-in-Manitoba goods and drawing attention to visible patrols along the North Dakota border.

At the same time, Kinew said Canada’s response “has to be noticed” if the newly-sworn in leader of the United States starts a trade war.

“We can’t be a punching bag and we have to get our elbows up and let other folks know that we’re in the ring there, too,” the premier said during an afternoon news conference inside the Manitoba Legislative Building.

Kinew has released few details about contingency plans, citing a desire not to get into hypothetical scenarios and to maintain an element of surprise, should it be required in retaliation.

On Wednesday, he hinted that tax deferrals — for example, postponing the collection of retail sales fees or corporate ones — are up for consideration.

“If there’s a cash crunch, there’s a liquidity concern for business, if we can help to just allow people to have a bit of a bridge to more economic stability in the future … then that’s one concrete way that we could help,” he said, adding leaders are looking at short-term and long-term responses.

The premier dodged specific questions about whether the province is preparing retaliatory tariffs or, specifically, banning U.S. alcohol product sales — a possible reprisal B.C. Premier David Eby has suggested for his home province.

Asked about his thoughts on Saskatchewan Premier Scott Moe’s vocal opposition to introducing dollar-for-dollar retaliatory tariffs, Kinew said he did not want to address any tactics that have yet to be cemented.

“We can’t be a punching bag and we have to get our elbows up and let other folks know that we’re in the ring there, too.”–Premier Wab Kinew

Kinew noted he and his counterparts across the country are not interested in escalating the situation with the U.S. and instead are taking advantage of a “window of opportunity” to stop the tariffs from coming into effect.

Trump initially floated 25 per cent tariffs on respective imports from Canada and Mexico as a response to his claims that both countries were failing to crack down on the illegal migration of people and drugs into the U.S.

Since his Jan. 20 inauguration, the Republican leader has ordered a study into Canada-U.S. trade relations be completed by April 1. Trump has said tariffs could be imposed as early as Saturday.

“We don’t have a trade imbalance with the United States. We import more than we export so it could be a double-whammy for Manitoba businesses if Canada goes dollar-for-dollar in retaliation,” said Loren Remillard, president and chief executive officer of the Winnipeg Chamber of Commerce.

Remillard noted the latest provincial trade update indicates about 75 per cent of international imports, the majority of which are manufacturing related, come from the U.S.

That was up by $124 million or just under one per cent on a year-to-date, per 2024’s third-quarter results from the Manitoba Bureau of Statistics.

“We don’t have a trade imbalance with the United States. We import more than we export so it could be a double-whammy for Manitoba businesses if Canada goes dollar-for-dollar in retaliation.”–Loren Remillard

The fall report showed exports to the U.S. accounted for 73 per cent of all exports from the province.

While Remillard said he was pleased to hear the premier is thinking about ways to support the business community, he said it will be important to provide “immediate relief” and “certainty.”

The chamber spokesman said scrapping the payroll tax is an option to remedy the impact of potential tariffs.

Remillard added that members are concerned about any barriers to international commerce that go against “the spirit of decades of liberalized trade.”

Kinew said he reiterated that Manitoba is a partner of the federal government’s in maintaining a strong trading relationship with the U.S., as evidenced by proactively bolstering border enforcement, during the tele-huddle on Wednesday.

The province is encouraging Ottawa to use its tools, including a treasury that is far more “weighty” than Manitoba’s, to support Canadians, he said.

The premier’s office is scheduling meetings with First Nations leaders and the Manitoba Métis Federation to discuss their pressing trade-related concerns in the coming weeks.

maggie.macintosh@freepress.mb.ca