U.S. Tariff Update #2 – Provincial Government Supports
On March 4, Manitoba premier Wab Kinew announced an opt-in tax deferral program for businesses impacted by the U.S. tariffs. This will allow effected businesses to defer payments of two provincial taxes for at least three months, starting with the February tax period (effectively covering March through May 2025):
- Provincial Sales Tax (PST): A 7% tax on most goods and services, which businesses collect and remit. Deferring this keeps cash in hand rather than sending it to the province immediately.
- Health and Post-Secondary Education Tax Levy (Payroll Tax): Applies to businesses with annual payrolls over $2.25 million (at rates of 4.3% or 2.15%, depending on size). This relief targets larger employers.
There is still more information yet to come, but this is a ‘opt-in’ program, meaning businesses must actively choose to participate rather than it being automatic. The province hasn’t fully detailed the mechanics as of today, such as:
- Application Form or Deadline: No specific opt-in form or cutoff date is public. The February period implies businesses must act before March 20 (typical PST due date), but this isn’t confirmed.
- Eligibility Proof: Unclear if firms need detailed proof (e.g., invoices showing U.S. trade) or just a self-declaration.
- Repayment Terms: There is possibility of extensions or gradual payback, but no firm plan exists yet—likely to evolve based on tariff duration.
We will update members as this information becomes available.
For your reference, A full List of U.S. products subject to a tariff can be found here:
Also, a full list of U.S. Products being considered for a Tariff after a 21 day evaluation period can be found here: