City of Toronto Launches Tax Deferral Program to Shield Manufacturers from U.S. Tariff Impacts

Toronto — In a direct response to escalating U.S. tariffs, the City of Toronto has launched a new Industrial Property Tax Deferral Program aimed at protecting local manufacturers and bolstering economic resilience.

Mayor Olivia Chow unveiled the initiative Thursday at Plastic Plus, a Toronto-based eyewear manufacturer, as part of the city’s 10-point Economic Action Plan in Response to U.S. Tariffs. The deferral program allows eligible industrial property owners to postpone their 2025 tax payments from June 1 to November 30 without penalties or interest.

“Toronto manufacturers are at the heart of our local economy, creating jobs, building essential goods and supporting families across the city,” said Mayor Chow. “This tax deferral program is one way we’re stepping up to support them during a senseless and harmful trade war.”

The tax measure is designed to provide immediate cash flow relief to manufacturers navigating uncertainty in global trade, particularly those impacted by new tariffs from the United States.

City of Toronto launches Industrial Property Tax Deferral Program to support local manufacturers impacted by U.S. tariffs

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— City of Toronto 🇨🇦 (@cityoftoronto) April 17, 2025

Toronto’s manufacturing sector is among the most diverse in Canada, producing everything from auto parts and medical devices to food products and advanced technology. Recognizing its economic importance, the City’s broader action plan also includes:

• A centralized business support service for manufacturers

• A Love Local campaign to promote Toronto-made goods

• New procurement policies prioritizing Canadian-made products

• Cross-regional partnerships to expand market access and reduce U.S. dependency

“Toronto has long been home to one of Canada’s largest and most diverse manufacturing sectors, and we’re proud of that legacy,” said Councillor Shelley Carroll, who serves as the Mayor’s Economic Development and Culture Champion. “We’re taking real steps to strengthen our supply chains, boost resilience across the sector, and make sure Toronto stays competitive.”

The City Council approved the Economic Action Plan on March 26, describing it as an adaptive strategy to shield Toronto’s economy from the fallout of international trade conflicts.

More information on the Industrial Property Tax Deferral Program and the full Economic Action Plan is available at toronto.ca/tariffs.

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