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With the recent developments involving U.S. tariffs on Canadian goods, the need for programs that support Canadian interests, industries, and workers has never been greater.
With this, several government-backed initiatives have been launched to help ease the burden for Canadian importers, exports, or business owners affected by the increasing trade costs.
In this article, we’ll explore the latest Canada tariff relief programs, grants, and loans available and how your business can access these new measures.
As the situation evolves, we’ll continue updating this article to give you the latest information and resources. Make sure you check in from time to time so you don’t miss anything!
Tariffs are taxes imposed by the government of a country or territory on goods and services imported from other countries. It is typically levied as a percentage of the price that a buyer pays a foreign seller (or the value of the import).
In short, it’s a tax on imports.
As to how things currently stand between Canada and the U.S., here’s a quick summary:
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From what we could find, the most common Canada tariff support comes in the form of loans, grants, and other related tariff relief measures. These other measures include credit insurance for exporters, forex facility guarantees, and other duty drawback programs that reimburse businesses for certain tariffs paid.
Below are some of the government support programs that we’ve been monitoring.
Export Development Canada, through the Trade Impact Program, has facilitated an additional $5 billion in funding for the next two years to help eligible Canadian exporters through a range of products to minimize the effects of these economic challenges.
The Business Development Bank of Canada is offering up to $2M to exporters or businesses whose supply chain is impacted by the U.S. tariffs as a way to offset costs, preserve cash flow, and update the supply chain.
Farm Credit Canada is providing $1 billion in lending to help the agriculture and food industry navigate the financial challenges caused by trade disruptions.
The Large Enterprise Tariff Loan facility is a new financing facility managed by the Canada Development Investment Corporation (CDEV) through its subsidiary, Canada Enterprise Emergency Funding Corporation (CEEFC). This facility provides financing support for large Canadian enterprises affected by actual and potential new tariffs and countermeasures. To determine eligibility, applicants are encourage to access this factsheet.
British Columbia has also taken substantial counter actions by imposing measures on American liquor products, purchasing, and biofuels content. For support for BC workers, businesses, and industries, British Columbia has kept track of federal and provincial programs that can help businesses grow, find new trade markets, and give support to key industries.
The FRONTIERE Program is especially targeted for Quebec exporting companies in the manufacturing or primary sectors significantly affected by the U.S. tariffs. It offers a loan of up to $50 million with a maximum term of 7 years and a capital repayment moratorium of up to 24 months.
This repayable support for businesses aims to provide short-term financial assistance for exporters facing disruptions in their current operations due to the tariffs. To be eligible, businesses need to have a minimum of 25% of sales to the U.S. or 25% of raw materials subject to counter tariffs.
The Competitive and Growth Program is available to all industrial, export-extensive companies that are significant to New Brunswick’s economy. This program seeks to enhance the long-term sustainability of these companies by addressing competitiveness gaps, stabilizing operations and employment, and stimulating investment and growth.
For New Brunswick Businesses seeking to invest in innovation and productivity, market development, or sector specific initiatives with expanded eligibility for tariff-impacted sectors, the Strategic Assistance Program is the tailored support they need. Requests for financial support under this program will be assessed individually.
The Ontario Together Trade Fund provides financial support to help businesses near-term investments so they can serve more interprovincial customers, develop new markets and re-shore critical supply chains in the face of U.S. tariffs.
Eligible applicants must operate within Ontario, have at least three years of operations, employ at least five full time equivalent (FTE's) active employees, and demonstrate that it operates in a sector extensively targeted by U.S. tariffs or its significant exposure to trade risk.
Prince Edward Island based manufacturers, processors, producers, distributors, and businesses who are significantly impacted by the export tariffs can get access to up to $500,000 for over six years with a fixed interest rate of 4% per annum. This program helps ensure that the businesses can maintain operations, preserve jobs, and invest in alternative supply chain strategies.
For active exporters or export-ready businesses in Prince Edward Island, the Export Enhancement and Diversification Fund offers non-repayable funding of up to $32,000 or 60% of eligible costs. These pre-determined eligible costs include (but are not limited to) market research, design, development and implementation of new advertising and promotional materials, development of e-commerce or digital strategies, market investigation, and attendance at appropriate trade shows and events identified by the business, for up to two participants per event.
Looking to stack the Canada tariff support programs with existing tax credits and funding opportunities? GrantFundPro is designed to match users with relevant funding opportunities based on their business profile.
Never miss out on funding opportunities by utilizing our advanced AI-powered search tools so you can quickly find grants, loans, tax credits, and wage subsidies that align with your specific needs. Learn more.
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