Trump and Ford: Tariffs, Ontario’s February 27th Election, and Your Business

Citing the need for a renewed mandate to tackle new tariffs announced by President Donald Trump, Ontario Premier Doug Ford confirmed that the Honourable Edith Dumont, Lieutenant Governor of Ontario, has accepted his advice to dissolve the 43rd Parliament of the Province of Ontario as of Tuesday January 28^th. The Lieutenant Governor also named February 27, 2025, as the date of Ontario’s next general election. 

Although it is not yet clear which specific goods or businesses will be impacted by tariffs or restrictive measures on either side of the border, below we cover some tariff risk mitigation strategies for you to consider.  

Tariff Risk Mitigation 

• Mergers and acquisitions: Tariff uncertainty may contribute to a freezing effect over M & A activity in both Canada and the United States. Trepidatious vendors may decide to slow or pause transactions while buyers are likely to proceed with more caution as they consider the implications of a changing trade environment on their target corporations. To minimize risk, buyers may seek to prolong due diligence periods and push for safeguards such as contingency payments, more robust material adverse change clauses and earnouts in M & A agreements.  

• Supply Chain Review: A thorough review of your supply chain and customs documentation can help you understand where your business may be vulnerable. Diversifying your suppliers and markets can mitigate the impact of new tariffs or other trade measures. 

• Commercial Contract Review. It’s never a bad idea to revisit and refamiliarize one’s self with  the commercial contracts governing your business transactions. In this case, review them to ensure they address potential changes in tariffs and either terminate or amend where necessary.

• Business Continuity:  There are a number of steps companies can take to help weather the impact of tariffs, including steps to secure financing in advance, the disposition of assets, and other reorganization strategies. Proactive discussion with lenders and other stakeholders, where appropriate, can help keep lines of communication and relationships strong in an uncertain trade environment.   

• Cost Mitigation Programs: Consider cost mitigation strategies such as the Canada Border Services Agency’s Duty Deferral Program. Generally speaking, the program provides opportunities to waive, postpone, or refund duties and taxes  usually paid on imported goods. There may be other cost mitigation programs open to you depending on the industry in which you conduct business.  

Access to insightful business and legal guidance will be critical for businesses to stay informed and to allow for proactive adjustment of strategies and operations. Tanya Kuzman and the other lawyers at Mills & Mills LLP would be delighted to assist you.  

At Mills & Mills LLP, our lawyers regularly help clients with a wide range of legal matters including business law, real estate law, estate law, employment law, health law, and tax law. For over 140 years, we have earned a reputation amongst our peers and clients for quality of service and breadth of knowledge. Contact us online or at (416) 863-0125. The material provided through the Mills & Mills LLP website is for general information purposes only. It is not intended to provide legal advice or opinions of any kind.