Manitoba's tariff relief measures welcomed by business community, brewery as good first step

Some in Manitoba's business community are welcoming early provincial initiatives to help cushion the economic fallout of U.S. tariffs on Canadian goods.

Premier Wab Kinew announced Tuesday businesses affected by the tariffs can choose to defer paying both the provincial sales tax and the provincial health and post-secondary levy — commonly called the payroll tax — for at least the next three months, starting with the February tax period.

"This is about them having liquidity, having that cash on hand, having those dollars to keep paying people's paycheques," Kinew said.

"As we go further, as different contours begin to reveal themselves in terms of the economic impact, we'll be there, as will the federal government to ensure that there's other supports for workers and businesses."

Winnipeg's Barn Hammer Brewing Co. plans to opt in to the provincial sales tax deferral, founder Tyler Birch told CBC News.

He said "everything helps" as the brewery's cash flow is already tight coming out of winter, and as they brace for potentially higher business costs and fewer customers as discretionary spending tightens up.

"Being able to keep some of that cash right now to soften the blow would be really great," Birch said.

He hopes the deferral period is longer and that payback to the province is gradual.

His business is already exempt from the payroll tax, which applies to larger companies with payrolls of more than $2.25 million annually. 

Chuck Davidson, president of the Manitoba Chambers of Commerce, said the measures are a good first step and indicate the province's recognition of the challenges ahead.

"The hope with all of this is that this is not a long-term situation," Davidson said.

He expects additional federal and provincial measures as the effects of tariffs become clearer and hopes they include more immediate options, including Ottawa helping to offset employee salaries or offering tariff rebates.

Davidson is also looking for progress on eliminating inter-provincial trade barriers.

Kinew said Ottawa and the provinces would have more to say on that on Wednesday.