Canada: Aviation

The Canadian government announces a temporary suspension of federal excise taxes on gasoline, diesel, and aviation fuels from April 20 to September 7, 2026, amid rising oil prices caused by Middle East conflicts disrupting global supply chains. This initiative, dubbed the "Fuel Tax Holiday," aims to provide $2.4 billion in relief to Canadians facing elevated costs at the pumps while Prime Minister Carney's Liberal government seeks to address public concerns following recent political developments.

When a purchase target is a Canadian aviation business holding an Air Operator Certificate ("AOC") issued by Transport Canada and a domestic licence issued by the Canadian Transportation Agency ("CTA"), the legal requirement that the Canadian aviation business maintain its "Canadian" status can complicate the deal when non-Canadian investors are involved.

After months of "will he or won't he" drama, the United States announced on July 31, 2025 that baseline tariffs on most goods imported from Canada would increase to 35%.