Ontario’s businesses are facing an uncertain time, with many fearing the impact of tariffs and the fallout from a Canadian-U.S. trade war. The 2025 provincial budget, released on May 15, has sent a clear message that the Government of Ontario is aware of the threat and is preparing to meet it. The Greater Niagara Chamber of Commerce (GNCC), on behalf of Niagara’s business community, welcomes these measures.

$11 billion in immediate support has been announced for businesses, including tax deferrals and rebates. 80,000 Ontario businesses will receive six-month, penalty-free tax deferrals totalling $9 billion. These relief measures come on top of an additional $2 billion in employer WSIB rebates, and additional funds for trade-impacted communities and worker training centres.

The GNCC is particularly grateful for the Protecting Ontario Account. In past years, many businesses reported to us that they fell through the cracks of various programs aimed to aid and relieve them. This backstop program reassures us that no business facing severe hardships from tariffs will be left to face them alone and unaided.

The Ontario Made Manufacturing Investment Tax Credit was announced before the budget, and the GNCC announced its support at that time. Investments such as this, the Invest Ontario Fund, the Ontario Together Trade Fund, funding for Venture Ontario and funds to develop high-tech industries will help ensure that Ontario’s economy grows in the right direction.

These measures do come at a cost, and we note that the 2025-26 deficit has increased significantly as a result. While large deficit increases are always alarming, these are extraordinary circumstances that demand a robust government response, our debt-to-GDP ratio is still below the target threshold, and Ontario’s strong credit ratings are helping to keep the cost of debt servicing relatively low. While Ontario’s path back to surplus has been delayed, it has not been abandoned. Based on this, we remain confident in Ontario’s economic future.