Recent tariffs imposed on Canadian goods have raised concerns among businesses that rely on U.S. markets. While government support has primarily focused on countermeasures, officials have signaled that their response will evolve as needed.
Some funding groups are working on targeted responses to support affected industries. For example, Protein Industries Canada has announced their response plan to assist Canada’s ingredient manufacturers and food processers by increasing their use of Canadian inputs and fast-tracking the development of products for the domestic market through the Strengthening the Canadian Supply Chain Program. The program will reimburse up to 75% of eligible costs, with a maximum reimbursement of $200,000, for projects focused on reformulating products with domestically produced ingredients or scaling up and commercializing to enhance the supply of domestically produced food products to Canadian consumers or domestically produced ingredients to Canadian manufacturers.
Existing funding programs can also be leveraged to help companies adapt to new uncertainties:
- Regional Development Agencies (FedDev Ontario, PacifiCan, ACOA, CED, PrairiesCan, CanNor & FedNor): These agencies continue to support high-growth companies looking to expand internationally or pivot into new markets. Government of Canada has committed to providing more funding to these agencies so they can better support businesses at this time.
- CanExport SME: This longtime program helps businesses expand into new markets, and can be used to support companies in developing markets beyond the U.S. The program has reopened for projects starting April 1, 2025 and will provide up to $50,000 in support.
Beyond funding programs, several government agencies and financial institutions are stepping up to support businesses affected by tariffs:
- Trade Commissioner Service (TCS) will continue their work in helping companies identify new markets and facilitate internal expansion to navigate disruptions.
- Canada Small Business Financing Program will make it easier for small businesses to get loans from financial institutions by sharing risk with lenders.
- Export Development Canada (EDC) Trade Impact Program is deploying $5 billion over two years to assist exporters in reaching new markets.
- Business Development Bank of Canada (BDC) is allocating $500 million in favorably priced loans to sectors directly affected by tariffs, in addition to offering advisory services.
- The Government of Canada is establishing a Tariff Remission Process; a framework for businesses to request tariff remission on certain U.S. imports.
- Employment and Social Development Canada has introduced temporary flexibilities to EI Work-Sharing Program to enhance access and extend maximum agreement durations for employees who reduce work hours due to decreased business activity.
- The Government of Canada has a comprehensive suite of information and services to support businesses in their plans to expand into new markets
As government support continues to evolve, businesses should stay informed and leverage these resources to adapt and grow despite the challenges. Need help identifying the right program for your company? Reach out to discuss an individual strategy to support your business.
