Toronto Industrial Property Tax Deferral Offers Tariff Relief

In response to a series of U.S. tariffs introduced in 2025 targeting Canadian exports, the City of Toronto has launched a property tax deferral program to support local manufacturers and industrial businesses. While certain goods qualify for exemptions under the Canada-United States-Mexico Agreement (CUSMA), the new tariffs have created financial pressures for companies with cross-border operations.

At present, key tariff actions include:

• March 4, 2025: 25% tariff on most goods imported from Canada, and 10% on energy products. As of March 7, CUSMA-compliant goods are exempt.
• March 12, 2025: 25% tariff imposed on Canadian steel and aluminum products, increased to 50% effective June 4.
• April 3, 2025: 25% tariff on Canadian automobiles, with a 25% tariff on auto parts expected no later than May 3. For CUSMA-qualifying vehicles, the tariff applies only to the non-U.S. value.

These developments have disrupted cash flow and investment planning for many industrial taxpayers, especially those in the manufacturing and energy sectors. The City’s tax deferral program aims to provide temporary relief during this period of economic adjustment.

As international trade policy remains fluid, businesses should closely monitor tariff developments and consider the short-term relief options currently available.

Program Details and Eligibility

Toronto’s Industrial Property Tax Deferral Program allows approved applicants to defer their final 2025 property tax installment without interest or penalties through November 30, 2025.

Eligibility criteria:

• Applicant must own or lease an industrial property in Toronto.
• Business operations must have been negatively impacted by the U.S. tariffs introduced in 2025.
• Applicants must submit a completed attestation form confirming hardship and compliance with the City’s eligibility rules.

Tenants applying must also provide written acknowledgment from the property owner.

Implications for Industrial Businesses

The deferral program offers immediate cash flow relief for industrial taxpayers navigating the financial impact of U.S. tariffs. For manufacturers with US-dependent supply chains, it may help offset short-term costs and stabilize operations during a volatile period.

Eligibility depends on the applicant’s ability to demonstrate tariff-related hardship, and tenants must also obtain written acknowledgment from their property owner. As with any deferral program, the actual benefit will vary depending on the taxpayer’s specific property holdings and financial situation.

More broadly, the program reflects an acknowledgment by policymakers that international trade developments are creating financial strain for local industry. For businesses navigating cross-border cost pressures, evaluating all available relief options—including local deferrals and potential assessment reduction opportunities—can be an important part of long-term financial planning.