As Ontario offers relief amid tariffs, what could the 2025 budget include?

Executive summary

Ahead of the upcoming provincial budget, Ontario Premier Doug Ford’s government introduced measures intended to support workers and businesses amid U.S. tariffs. Although details of the 2025 budget are not confirmed, it could include measures intended to fulfil Ford’s campaign pledges of stimulating the province’s economy and making life more affordable for residents.

Editor’s note: This article was updated on April 7 to reflect the latest announcements from Ontario’s provincial government.

Ontario Premier Doug Ford’s upcoming budget could signal a transformative period for the province’s fiscal landscape with the potential introduction of several tax relief measures.

The date for the provincial budget’s release has not been announced and details of its content are not confirmed. In the interim, Ford announced approximately $11 billion in relief and support for workers and businesses on April 7 to safeguard the province’s economy from economic uncertainty and the impact of U.S. tariffs.

The province will grant penalty and interest relief for the next six months (from April 1 until Oct. 1) on the following provincially administered taxes to allow businesses to temporarily defer payments:

• Employer Health Tax.

• Insurance Premium Tax.

• Gasoline Tax.

• Fuel Tax.

• Mining Tax.

• Tobacco Tax.

• International Fuel Tax Agreement.

• Beer, Wine and Spirits Tax.

• Retail Sales Tax on Insurance Contracts and Benefit Plans.

• Race Tracks Tax.

Additionally, the province is issuing a surplus rebate through the Workplace Safety and Insurance Board (WSIB) to eligible businesses who are safe employers. This is in addition to the previous rebate distributed in February and March 2025.

What might be featured in the budget

As for other measures, businesses and residents could use Ford’s election focus on safeguarding Ontario’s economy, supporting workers and fostering economic growth as potential indicators for what the budget may include.

Ontario businesses could see potential corporate tax cuts and investment in the expansion of current tax credits. Through the $300 million investment initiative to expand the Ontario Made Manufacturing Investment Tax Credit, Canadian businesses operating within Ontario’s auto and advanced manufacturing sectors may see an increased in tax advantages.

These cuts and investment initiatives could encourage business investment and job creation and make Ontario a more attractive place for businesses. These measures could stimulate economic growth and increase employment opportunities across the province.

A cut to the provincial gas tax could also be included in the upcoming budget. If introduced, this could lower the cost of fuel for many Ontario residents by helping to offset the impact of inflation on transportation expenses.

In response to looming U.S. tariffs, Ontario’s budget may include provisions for tariff-related tax deferrals. This initiative could provide up to $10 billion in support for employers, helping them manage cash flow and maintain operations in the face of external economic pressures.

Ford’s election campaign focus

Running on a “Protect Ontario” platform amid the backdrop of U.S. tariffs, here are some of the key issues Ford’s Progressive Conservative Party highlighted during the recent Ontario election:

1. Economic protection: Ford’s plan promised to provide immediate support through the potential introduction of measures relating to tax relief, cash-flow support and targeted assistance for affected industries as means to safeguard the province’s economy from threats like tariffs.
2. Worker support: Ford’s campaign pledged significant investments in skills training, with an additional $1 billion for the province’s Skills Development Fund and $165 million for a new Learn and Earn Initiative.
3. Economic diversification: Ford’s platform emphasized attracting new investments and jobs in the manufacturing, life sciences and technology sectors by building a critical minerals supply chain and supporting cross-provincial infrastructure projects.
4. Reducing regulatory barriers: Ford’s election campaign pledged to abolish internal trade barriers, expand labor mobility and push for the removal of federal barriers that could increase costs and slow down nationwide projects.

The takeaway

Should Ontario’s government propose initiatives such as gas tax cuts, corporate tax reductions and tariff-related tax deferrals in its upcoming budget, businesses and residents could receive immediate financial support. This, in turn, would see the governing Progressive Conservative Party act on its election pledges of economic protection and diversification, support for workers and the reduction of regulatory barriers.